IFC proposes up to $100m funding in Bank of Maldives to aid virus-hit firms

International Finance Corporation (IFC), a member of the World Bank Group, is considering a proposal to extend funding of up to $100 million to state-owned lender Bank of Maldives.

The proposed investment will consist of a senior secured loan of up to $50 million and a potential mobilisation of up to $50 million, plus an optional greenshoe, IFC said in a disclosure. The loan will have a tenor of up to three years.

The proposed IFC funding will be on-lent by the bank through working capital loans to support companies and SMEs in the tourism and services sectors in the Maldives, which have been impacted due to COVID-19.

“The investment is in response to the crisis caused by the coronavirus global pandemic which has adversely impacted the tourism industry, resulting in a liquidity crunch in related sectors,” IFC said.

IFC said the bank has designed a working capital financing program to support the tourism sector in the wake of the COVID-19 crisis, and the funding will extend its effort to this critical sector, which would, in turn, have a positive cascade to related value chains.

“The project will provide the financing required to support the tourism-related businesses, including those SMEs in the tourism value chain, with their working capital requirements, and to expedite their post-crisis recovery,” it added.

Bank of Maldives was established in 1982 as a joint venture, with a 60 per cent stake held by the government of the Maldives and 40 per cent by Bangladesh-based International Finance Investment Company Limited (IFIC Bank Limited).

Following the divestment by IFIC Bank Limited in 1992, the Maldives government assumed a majority shareholding. The bank is now listed on the Maldives Stock Exchange with the government owning approximately 66 per cent, including a 51 per cent stake held by the finance ministry.

The bank has the largest network of branches (38) in Maldives. As of March 31, 2020, Bank of Maldives had a customer base of around 285,000, representing around 53 per cent of the total population.

IFC said on its website that it is providing $8 billion in fast-track financial support to existing clients to help sustain economies and preserve jobs during this global crisis, which will likely hit the poorest and most vulnerable countries the hardest.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.