IFC and IFC Capitalization Fund Become Shareholders in Bank South Pacific with $140 Million Investment

In Sydney: 
Sara King  
Phone: (+612) 9235 6524 
E-mail: Sking@ifc.org 

In Washington: 
Alexandra Klopfer 
Phone: +1 (202) 473 4645 
E-mail: aklopfer@ifc.org




Port Moresby, Papua New Guinea, July 30, 2010— IFC, a member of the World Bank 
Group, and IFC Capitalization Fund have become shareholders in Bank South 
Pacific to help expand financial services in Papua New Guinea and bolster the 
bank’s presence across the Pacific islands.  

In supporting the bank’s long-term growth plans, IFC has bought a five percent 
equity stake in BSP from the Independent Public Business Corporation of Papua 
New Guinea, a government-owned investment body, while the IFC Capitalization 
Fund has acquired another five percent of equity by subscribing to newly issued 
shares. In addition, IFC is providing a long-term $30 million senior loan, 
enabling BSP to increase its lending to eligible borrowers in Papua New Guinea. 
The complete package of around $140 million represents IFC’s largest investment 
in the Pacific region to date.   

“IFC’s financial commitment endorses our bank’s strong market position and 
strategic direction,” BSP Managing Director Ian Clyne said at a public signing 
ceremony of the investment, which was first announced on June 24, 2010.  “IFC’s 
investment and expertise will further build and diversify our capital and 
customer base, allowing us to position ourselves as a leading provider of 
banking services in the Pacific.” 
 
BSP is Papua New Guinea’s largest retail and commercial bank with operations 
extending to the Pacific islands of Fiji, Niue, and the Solomon Islands.  With 
IFC’s support, the bank will broaden services to small to midsize businesses 
and rural clients by expanding innovations such as mobile phone banking.    

“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 standards,” said Karin Finkelston, IFC Director for 
East Asia Pacific.  “IFC will work alongside the bank’s other shareholders to 
strengthen its product offerings, internal systems and governance.” 

"We are pleased that the IFC Capitalization Fund is supporting Bank South 
Pacific,” said Marcos Brujis, Head of the IFC Capitalization Fund. “We look 
forward to working with BSP management to help strengthen this systemically 
important institution and increase value for its shareholders and clients.” 

The $3 billion IFC Capitalization Fund was set up by IFC and the Japan Bank for 
International Cooperation to support banks considered vital to the financial 
system of an emerging market country, with a goal of speeding up economic 
recovery, boosting job creation and reducing the impact of the global financial 
crisis. The fund is managed by IFC Asset Management Company. 

About IFC 
IFC, a member of the World Bank Group, is the largest global development 
institution focused on the private sector in developing countries. We create 
opportunity for people to escape poverty and improve their lives. We do so by 
providing financing to help businesses employ more people and supply essential 
services, by mobilizing capital from others, and by delivering advisory 
services to ensure sustainable development. In a time of global economic 
uncertainty, our new investments climbed to a record $18 billion in fiscal 
2010. For more information, visit www.ifc.org.  

About IFC Asset Management Company 
IFC Asset Management Company LLC, a wholly-owned subsidiary of IFC, invests 
third-party capital, enabling outside investors to benefit from IFC’s expertise 
in achieving strong equity returns as well as positive development impact in 
the countries in which it invests. It manages the $3 billion IFC Capitalization 
Fund as well as the IFC African, Latin American, and Caribbean Fund. 

About Japan Bank for International Cooperation 
JBIC is the international wing of the Japan Finance Corporation (JFC), Japan’s 
policy-based financing institution established on October 1, 2008. It succeeded 
International Financial Operations of former JBIC and will continue to use the 
name of JBIC to maintain international trust and confidence it has gained. JBIC 
provides policy-based finance with a mission to contribute to the sound 
development of the Japanese and international economy, including finance 
responding to disruptions in financial order in the international economy. For 
more information, visit www.jbic.go.jp.