Micro Enterprise Bank of the Philippines Summary Of Project Information (SPI)       Project Name:    Philippines: Micro Enterprise Bank of the Philippines        Region:     East Asia and Pacific      Sector:   Project No:009460   Projected Board Date:August 22, 1999   Company Name:Micro Enterprise Bank of the Philippines   Technical Partner and/or Major Shareholders    	Technical Partner: Internationale Projekt Consult GmbH ("IPC")    	Foreign Shareholders: International Finance Corporation ("IFC")                               Internationale Mikro Investitionen                                 ("IMI AG")                               Nederlandse Financierings-Maatschappij Voor                               Ontwikkelingslanden N.V. ("FMO")   				  Asian Development Bank ("ADB")	         Local Shareholders: Far East Bank and Trust Company ("FEBTC")                               Pilipinas Shell Foundation (Shell)    Project Cost Including proposed IFC investment    	P80 million (US$2.0 million equivalent)   	IFC will contribute up to 20% of the startup capital.    Location of project and Description of site    	Davao, Philippines    	Davao is the capital of Mindanao, the underdeveloped and once troubled region of the Philippines marked with political instability. Today, Davao is striving to become the Philippines''s gateway to the evolving East ASEAN Growth Area (EAGA - comprised of Brunei, Indonesia, Malaysia, and the Philippines).  The city''s acessibility and natural endowments (its coastline and natural resources) makes it a key player in Mindanao''s economic development.    Description of Company and Purpose of Project    	The Project envisages the creation of a joint-venture thrift bank specializing in microlending to be headquartered in Davao.    This entity would extend very small credits (between US$350 to US$800 equivalent), mostly working capital loans, with short maturities and frequent installment repayments.  MEP will extend microcredit on commercial terms and interest rates will be set to recover the full cost of funds plus operating costs and a healthy margin for profit and provisions.    	IFC Role:  IFC will (1) assume its institution building role as MEP will be the first commerically-oriented Philippine microfinance institution to be structured as a thrift bank; (2) structure the financing of this project; (3) procure and catalyze grant funding to fund the two year IPC TA; and (4) take the lead in drafting the legal investment documents with assistance from local counsel selected by IFC to represent all shareholders and thereby reduce start-up expenses.   	   Development Impact:  Through this project, IFC will be fulfilling its catalytic role in mobilizing private sector investments into the start-up microfinance institution.  Further, IFC will be deepening the Philippine financial sector by formalizing a once informal line of business.     Environmental Category and Issues    	This is a Financial Intermediary (FI) Type 1 project according to IFC''s environmental and social review procedure.  MEP will be required to develop and implement procedures to screen loan applications for compliance with host country environment requirements, health and safety requirements and consistency with IFCs Microfinance Exclusion List.    The  is  from the InfoShop.        Date SPI sent to InfoShop:     July 20, 1999      This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporations Board of Directors.  It is provided for the purpose of enhancing the transparency of IFCs activities and should not be construed as presuming the outcome of IFC Board consideration.    For Additional Information contact:  Corporate Relations Unit -   telephone: (202) 473-7711   facsimile: (202) 974-4384