IFC finally acquires 10% stake in BSP

THE International Finance Corp last Friday finalised the acquisition of a 10% stake in Bank South Pacific.
IFC has acquired 5% new equity directly from BSP to boost its existing equity of 5% acquired from the Independent Public Business Corp (IPBC).
The complete package for the investment is US$140 million (K370million).
IFC director for East Asia & Pacific Karin Finkelston said: “These millions represent IFC’s single largest investment in the PNG and Pacific to date.”
“In addition, IFC is providing a long-term US$30 (K80 million) senior loan, enabling BSP to increase its lending in Papua New Guinea, especially smaller entrepreneurs.
“IFC is pleased to partner with BSP to help extend financial services to customers who otherwise may not be able to obtain the financing needed to do business and improve living standard.”
She said IFC would  work alongside the banks and other shareholders to strengthen its product offering, internal system and governance and provide technical assistance.
“We are looking forward to working with BSP management to help strengthen this important institution and increase values for its shareholders and clients,” Finkelston added.