- November 7, 2016
- Posted by: eflorencio
- Categories: ADFIAP News, Association News
The ADFIAP Consulting (AC) team, led by its Head, Ms. Corazon D. Conde, visited the Pacific Island Development Bank (PIDB) on October 19, 2016 and met with Ms. Rosa Weilburger at PIDB’s new office located in Nanbo Guahan Building, 250 Route 4, Suite 205, Hagatna, Guam 96910. Ms. Weilbacher informed the group that PIDB has transferred from its old office which it has occupied for about 15 years, in order to be more visible and accessible to its clients. Also present during the visit were other AC officers that included Atty. Alberto B. Reyno, Ms. Arlene S. Orencia, Cecilia M. Ibarra, Carmelita Chavez and Ma. Cristina T. Aquino, and Mr. Victor Abainza, ADFIAP Consultant.
The following day, October 20, 2016, PIDB President, Mr. Aren Palik updated the AC team on recent developments on the marketing activities of the bank. Mr. Palik mentioned that PIDB has reached a total loan portfolio of $1.0 M with a 50-50 funding from equity and soft loans. With past due loans being negligible, PIDB’s member-banks have started to realize the benefits of increasing equity as PIDB can also financially support the businesses in their respective areas to the extent of their contribution. Equity is expected to further increase in the near future as they continue to follow this capitalization strategy.
Mr. Palik further informed AC that its top management has finally approved its proposed loan package application with the Japan Bank for International Cooperation (JBIC). Under an earlier Memorandum of Agreement (MOA) signed between ADFIAP and PIDB, ADFIAP through its consulting group, provided professional assistance to the bank in the sourcing of development funds from JBIC. The fund sourcing project aims to provide assistance to PIDB in sourcing funds to support identified development projects in view of the funding gaps of PIDB membership. PIDB acts as the borrower and wholesaler of the said funds. It plans to lend the funds to accredited financial institutions or conduit banks in member-countries, which in turn, on-lends to investment enterprises or end-borrowers. The support services undertaken by ADFIAP consist of four (4) phases with Phase 1 (Appraisal/Fact Finding Mission) completed.
Mr. Palik apprised the team that a pledge from bank stakeholders has been finalized together with the project listing of about $50M which the bank plans to increase to $100M. In this connection, PIDB is again seeking the assistance of ADFIAP in the preparation of the final Project Concept Proposal to be submitted to JBIC including other prospective documentary requirements relevant to its application and clarification of any issues/challenges that may be of concern to JBIC so as to facilitate the processing of its application for fund sourcing. In furtherance of its earlier agreement with PIDB, AC has committed to assist the bank in pursuing the fund-sourcing project.
PIDB was established in July 1989 as a regional development finance institution whose mission and purpose is to contribute to the economic and social development of its members. Current members and shareholders of PIDB include the governments of the Commonwealth of the Northern Mariana Islands (CNMI), Republic of the Marshall Islands, Republic of Palau, Island of Guam and the FSM States of Chuuk, Kosrae, Pohnpei and Yap. The bank was created in response to a long-standing desire on the part of these small island nations and states for a financial/lending institution that focuses on the pressing needs and the challenges of the region.