World Bank unit takes stake in Philippine bank

MANILA: The World Bank's investment arm, the International Finance Corp, is to invest $49 million in a minority stake in Philippine lender Rizal Commercial Banking Corp, the listed bank said Wednesday.

Rizal said it had reached agreement Wednesday on the International Finance Corp taking the 7.2 percent stake.

"The investment of IFC... represents an important element of the capital-raising strategy of (Rizal)," the statement said.

Mid-table lender Rizal, capitalised at 25 billion pesos ($576 million), said it would use the capital to boost its lending to both large corporate clients as well as to small- and medium-sized businesses and in consumer finance.

"Through its Small and Medium Enterprise Banking Initiative, IFC is also forging strategic partnerships with local banks to allow small and medium enterprises greater access to credit," the IFC's website said.

IFC also has a stake of just under one percent in Banco de Oro, one of the Philippines' largest banks.