Port of Spain, Trinidad/ Washington DC, May 20, 2002—The International Finance Corporation (IFC), the private sector development arm of the World Bank Group, has signed an agreement for a US$20 million credit line with Republic Bank Limited of Trinidad and Tobago to help provide much-needed long-term financing to projects in the country and the Caribbean region.

IFC’s investment will help Republic Bank to finance its current project pipeline in industry, private infrastructure and tourism.  This is IFC’s second major investment in the Trinidad and Tobago financial sector.

Bernard Pasquier, IFC’s Director of the Latin America and Caribbean Department said: “Strengthening the financial sector in Trinidad and Tobago is a key IFC priority. Our collaboration with Republic Bank shows a clear commitment to pursue this objective and will establish a foundation for other financial markets development work in the country and the region.”

David Dulal-Whiteway, Deputy Managing Director of Republic Bank Limited, said: “There is a great demand for long-term US dollar funding within the Caribbean region. However, our deposit base continues to be of a short-term nature, thereby limiting the extent to which we at Republic Bank can meet this growing need.  The IFC credit line plays a great role in providing a competitively priced source of long-term US dollar funding for our customers. It is our wish that this will encourage more long-term US dollar funding to the region.”

IFC’s credit line will also allow Republic Bank to improve its maturity gap and will enhance environmental as well as financial management, such as improving asset-liability management techniques.

IFC’s current portfolio in Trinidad and Tobago accounts for up to $80 million in sectors such as manufacturing, energy and financial services.  Companies that had received financing from IFC in the past include the gas company Messer Trinidad & Tobago Limited, Caribbean Ispat Ltd steel facility, Unicell Paper Mills Caribbean Ltd, and Royal Merchant Bank and Finance Company Limited.

Since 1966, IFC has approved more than 20 projects in the English-speaking Caribbean and the Dominican Republic with a total cost of more than $1.2 billion.  In addition to investing $328 million for its own account, IFC has mobilized an additional $242 million in funding from various local and international partners.

Republic Bank is headquartered in Port-of-Spain, and is a well-diversified financial group in Trinidad and Tobago. Republic Bank’s operations span across the Caribbean region through subsidiaries in Grenada, Guyana, Cayman and Barbados. The Group has 3, 277 employees, 61 branches and the largest banking franchises in Trinidad and Tobago, Grenada and Guyana.

IFC’s mission (www.ifc.org) is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people's lives.  IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, and provides technical assistance and advice to governments and businesses.  Since its founding in 1956, IFC has committed more than $31 billion of its own funds and arranged $20 billion in syndications for 2,636 companies in 140 developing countries.  IFC’s committed portfolio at the end of FY01 was $14.3 billion.