The International Finance Corp. (IFC) has committed $399 million to projects in the Philippines, with most investments aimed at fostering a more resilient and inclusive recovery from the coronavirus disease 2019 (COVID-19) pandemic.
IFC, a member of the World Bank Group, which is focused on the private sector in emerging markets, said in a statement yesterday its fiscal year 2021 investments for the Philippines include issuing debt financing to CARD Bank Inc. and CARD SME Bank Inc., an investment that aims to benefit over 60,000 companies, 44,000 of which are micro, small and medium enterprises (MSMEs) owned or led by women.
It also includes an investment in the form of convertible bonds in Cebu Air Inc. to help maintain trade and the competitiveness required to provide affordable transportation, as well as an investment in a seven-year social bond to be issued by Union Bank of the Philippines. Proceeds from the latter’s bond are expected to finance more than 2,000 loans to MSMEs, creating tens of thousands of jobs, IFC said.
Lastly, the list includes an investment in Growsari, a business-to-business startup that connects mom-and-pop stores in the Philippines with manufacturers and wholesalers of milk, rice and other consumer products, which IFC said will help lower prices, boost sales and digitalize supply chains in the country.
“The Philippines has been deeply affected by COVID-19, which has reversed many of the development gains the country has achieved,” Jean-Marc Arbogast, country manager for the Philippines at IFC, said.
“This has created an even greater sense of urgency to foster a more inclusive recovery, and IFC is committed to remaining a steadfast partner to the Philippines through the challenges that lie ahead,” he added.
Meanwhile, IFC said despite the unprecedented challenges of a pandemic, fiscal year 2021 saw a record commitment of $3.8 billion by IFC in the East Asia and the Pacific region, including $2.8 billion in long-term financing from its own account and $956 million mobilized from outside investors.
In addition, IFC provided $1.5 billion in short-term finance in the region to facilitate trade flows.
IFC said it has committed $1.9 billion to COVID-19 response efforts since the onset of the health crisis in the East Asia and the Pacific region.
Since 1962, IFC has invested more than $5.5 billion, of which over $3.5 billion was invested from its own account, in around 160 projects in the Philippines. — Angela Celis
