DBJ offers “green” financing & certification program ... offers “green” financing &...

ADFIAP NEWSADFIAP NEWSADFIAP NEWSADFIAP NEWSADFIAP NEWS11111

Volume 17, No. 6 Nov-Dec 2013

JJJJJanananananuaruaruaruaruary-Fy-Fy-Fy-Fy-Feeeeebrbrbrbrbruaruaruaruaruary 2014y 2014y 2014y 2014y 2014January-February 2014March-April 2014March-April 2014March-April 2014March-April 2014March-April 2014

DBJ offers “green” financing& certification program

Mr. Toru HashimotoPresident & CEO

DBJ, Inc.

DBP supports base conversiondevelopment projects

The Development Bankof the Philippines (DBP)and the BasesC o n v e r s i o nDevelopment Authority(BCDA) signed recentlya Memorandum ofUnderstanding (MOU)to establish the basisfor collaboration andcooperation between

DPB Chair Jose Nunez, Jr. and DBP President & CEO,Gil Buenaventura are seated 3rd and 4th from left, respectively

IIB bolsters privatesector developmentin emerging markets

via co-financingscheme

Mr. Nikolay Kosov (right)is the Chairman of IIB

International Investment Bank (IIB) and theInternational Finance Corporation (IFC), amember of the World Bank Group, haveagreed to streamline their collaboration toprovide much-needed financing to privatecompanies, boosting growth and jobs inemerging markets. The agreement wasformalized at a ceremony where IIB becamea signatory of the IFC Master CooperationAgreement (MCA). IIB is the 19th institutionto accede to the MCA, which standardizessteps that lenders take when co-financingprojects with IFC, saving time and money forborrowers – private companies in emergingmarkets – and lenders. IFC created the MCAin response to calls by the Group of 20 forfinancial institutions to collaborate moreclosely to meet shortfalls in private sectorfinancing during the global financial crisis.

NDB funds early childhoodeducation school

Mr. Moses LiuActing Managing

DirectorNDB

The National DevelopmentBank (NDB) through its“Woman in Business Desk”has enabled a Papua NewGuinean woman to live herdream of providing earlychildhood education for youngchildren in the nation’s capital. NDB presented a cheque ofover sixty thousand to MargaretKuiaha for the establishment ofa school to help many young

children in the Ensis Valley who just stay athome to baby sit while their parents areworking. Coming from a background ofteaching in early childhood education, Mrs.Kuiaha saw the need for these young childrento be introduced to education at an early age

please turn to page 5...

The Development Bank of Japan (DBJ), Inc.offers “DBJ G r e e n Building Certification”in order to support its customers who ownor operate real estate properties with highenvironmental and social awareness. Basedon its comprehensive evaluation system,which includes not only an environmentalperspective but also a social one (ownerresponse to social needs of the diversestakeholders of the properties), DBJidentifies and certifies “green buildings”which are essential in today’s real estate




ADFIAP News is a bi-monthly publication of theAssociation of Development FinancingInstitutions in Asia and the Pacific (ADFIAP).

Editorial Office: ADFIAP InternationalHeadquarters, 2/F Skyland Plaza, Sen. GilPuyat Avenue, City of Makati, 1200 Philippines.Email: [email protected]. Tel. Nos. (632) 816-1672 or 843-0932. Fax No. (632) 817-6498.

EDITORIAL BOARD

ADFIAP BOARD OF DIRECTORS

Datuk Wan Azhar Wan AhmadCredit Guarantee Corporation Malaysia BerhadChairmanMr. Metin PehlivanDevelopment Bank of TurkeyVice ChairmanMr. Pema TsheringBhutan Development Bank LimitedVice ChairmanAmbassador Jesus P. TambuntingPlanters Development BankTreasurer

DirectorsMr. Arjun FernandoDFCC BankMr. M.S. RaghavanIDBI Bank Ltd.Ms. Maike LerchKfW BankengruppeMs. Susana LauluDevelopment Bank of SamoaMr. Aliashraf AfkhamiBank of Industry & MineMr. Jean-Rene HaldeBusiness Development Bank of CanadaMr. Hu HuaibangChina Development BankMr. Toru HashimotoDevelopment Bank of Japan, IncMr. Askar DostiyarovDevelopment Bank of KazakhstanMr. Deve ToganivaluFiji Development BankMr. S.A.S.A. Sayef HussainHouse Building Finance Company, LtdMr. Saidakhmad RahimovNational Bank of UzbekistanMr. Shivjee Roy YadavNIDC Development Bank, Ltd.H.E. Ahmed Rashid Mohamed AlmamariOman Development BankMr. Son Koun ThorRural Development BankMs. Parichatara SirivongSME Development Bank of ThailandMr. Randolph Stanley KoppaTrade and Development Bank of MongoliaMr. Nguyen Quang DungVietnam Development BankMr. Vladimir DmitrievVnesheconombankMr. Octavio B. PeraltaSecretary General

Octavio B. PeraltaRobert JuanSandy Lim

Sandra HonradoEnrique Florencio

Editors

Call to Memberson

SustainabilityReport

EFI promotes social responsibility throughsustainable livelihood & education

Esquire Financing, Inc.’s (EFI) corporate so-cial responsibility is executed through H E L PFoundation o r “Helping Entrepreneurs LaunchPlentitude”, an NGO established in 2006 by EFI

Chairman & CEO R a j a nUttamchandani. With over 30branches across the main island ofLuzon, the HELP Foundation advo-cates for sustainable livelihood bygrowing promising micro-busi-nesses. EFI has also partnered withGawad Kalinga to support its child andyouth development programs. Amongother programs, HELP has spon-sored two schools called Sibol School1 and 2. These schools, mainly

coursed toward educating pre-school childrenages 3 to 6, were completed in 2011. EFI aimsto open more schools and provide more chil-dren with access to education.

ABDB assists in enterprisecompetitiveness & export potential

The Antigua andB a r b u d aD e v e l o p m e n tBank (ABDB) andthe CaribbeanE x p o r tD e v e l o p m e n tA g e n c y( C a r i b b e a nExport) signed amemorandum ofunderstanding (MOU) that allows legally-registered firms, individuals as well as businesssupport organizations (BSOs) in Antigua andBarbuda to be in a better position to export theirproducts and services throughout the Caribbeanregion and/or to international markets. Thisagreement between the ABDB and CaribbeanExport provides the type of institutional supportnecessary to facilitate access to grant fundingfor local businesses under Caribbean Export’sGrant Scheme. The scheme supports thebuilding of production capacity through training

a n d personaldevelopment ,facilitating trademark, intellectualproperty and thep r o t e c t i o nof copyr ightmaterial as wellas the opening ofnew markets,i m p r o v e

competitiveness of firms to identify new sourcesof supply for raw materials and further increasecompetitiveness. Antigua and Barbuda-ownedfirms that qualify for assistance under the DirectAssistance of the Grant Scheme could obtainbridge financing from ABDB. The signing of theMOU signals the commitment of ABDB to ensurethat local firms achieve and maintain a competitiveedge and in addition, enhance their ability togrow their businesses by taking advantageof opportunities to export to new markets.

LDB Sri Lanka wins an award,boosts SMEs in the countryside

Sri L a n k a ’sL a n k a p u t h r aDevelopment Bank(LDB) won the “MostElegant Team” title at the21st Inter Bank Quizcompetition organizedb y t h e C l e a r i n gAssociation of Bankersheld at the Hotel TajSamudra. As in theprevious years, theevent was successful

Mr. LasanthaAmarasekara

General Manager & CEO, LDB


Mr. Rajan AshokUttamchandani

Chairman & CEOEFI

Mr. Donald CharlesGeneral Manager

ABDB


MEMBERS

MEMBER ANNIVERSARIES

AGROBANK. ALALAY SA KAUNLARAN, INC..AL-AMANAHISLAMIC INVESTMENT BANK OF THE PHILIPPINES.ANDHRA PRADESH STATE FINANCIAL CORPORATION.ANTIGUA AND BARBUDA DEVELOPMENT BANK. ASAKABANK. ASIAN DEVELOPMENT BANK. BANK JABARBANTEN. BANK OF BHUTAN L IMITED. BANK OFINDUSTRY AND MINE. BANK OF KHYBER, THE. BANK OFTHE COOK ISLANDS. BANK PEMBANGUNAN MALAYSIABERHAD. BANK SIMPANAN NASIONAL. BHUTANDEVELOPMENT BANK LTD. BHUTAN INSURANCELIMITED. BHUTAN NATIONAL BANK LTD.. BUSINESSDEVELOPMENT BANK OF CANADA. CENTRE FOR SMEGROWTH & DEVELOPMENT F INANCE. CHINADEVELOPMENT BANK. COMMONWEALTH DEVELOPMENTAUTHORITY. CORPORATION BANK. CREDIT GUARANTEECORPORATION MALAYSIA BHD.. CREDIT GUARANTEEFUND TRUST FOR MICRO & SMALL ENTERPRISES.DEVELOPMENT BANK OF JAMAICA, LTD.. DEVELOPMENTBANK OF JAPAN, INC.DEVELOPMENT BANK OFKAZAKHSTAN. DEVELOPMENT BANK OF MONGOLIA.DEVELOPMENT BANK OF SAMOA. DEVELOPMENT BANKOF THE PHILIPPINES. DEVELOPMENT BANK OF TURKEY.DFCC BANK. ENTREPRENEURSHIP DEVELOPMENTINSTITUTE OF INDIA . ESQUIRE F INANCING, INC. .EURASIAN DEVELOPMENT BANK. EXPORT CREDITGUARANTEE AGENCY OF OMAN. EXPORT-IMPORT BANKOF INDIA. EXPORT-IMPORT BANK OF MALAYSIA BERHAD.F IJ I DEVELOPMENT BANK. F IRST CREDIT ANDINVESTMENT BANK LTD.FIRST PRIVATE BANK LIMITED.FSM DEVELOPMENT BANK. GLOBAL COALITION FOREFFICIENT LOGISTICS. HOUSE BUILDING FINANCECOMPANY LTD.. HOUSING DEVELOPMENT FINANCECORP. BANK OF SRI LANKA. ICRA LIMITED. IDBI BANKLTD.. IFCI LTD.. IFCL GROUP. INDIA SME. TECHNOLOGYSERVICES LTD. . INTERNATIONAL F INANCIALCONSULTING LTD.. INTERNATIONAL INVESTMENT BANK.IPDC OF BANGLADESH LIMITED. JAPAN BANK FORINTERNATIONAL COOPERATION. JAPAN ECONOMICRESEARCH INSTITUTE, INC. . JAPAN F INANCECORPORATION, MICRO BUSINESS AND INDIVIDUALUNIT. JOHOR CORPORATION. KARNATAKA STATEFINANCIAL CORPORATION. K FW BANKENGRUPPE.KOREA DEVELOPMENT BANK. LAND BANK OF THEPHILIPPINES. LANKAPUTHRA DEVELOPMENT BANK.MICRO FINANCE DEVELOPMENT FUND. MONGOLIANNATIONAL CHAMBER OF COMMERCE & INDUSTRY.NATIONAL BANK OF SAMOA. NATIONAL BANK OFUZBEKISTAN. NATIONAL DEVELOPMENT BANK OF PALAU.NATIONAL DEVELOPMENT BANK (THE) . NATIONALHOUSING BANK. NATIONAL PENSION AND PROVIDENTFUND. NATIONAL SMALL INDUSTRIES CORPORATIONLIMITED (THE). NIDC DEVELOPMENT BANK LTD.. NIUEDEVELOPMENT BANK. OMAN DEVELOPMENT BANK. OMANHOUSING BANK. OPTIMUM DEVELOPMENT BANK, INC..PACIFIC ISLANDS DEVELOPMENT BANK. PAG IBIG FUND.PAK – BRUNEI INVESTMENT COMPANY LIMITED. PAK-IRAN JOINT INVESTMENT COMPANY LIMITED. PAK-OMANINVESTMENT CO. (PVT) . LTD. . PARSIAN FARDAINVESTMENT & FINANCIAL COUNSELLORS INSTITUTE.PARTNERSHIP FOR ECONOMIC & SOCIAL INITIATIVES.PEOPLE’S CREDIT AND F INANCE CORPORATION.PERBADANAN NASIONAL BERHAD. PHILIPPINE EXPORT-IMPORT CREDIT AGENCY. PLANTERS DEVELOPMENTBANK. P. T. BANK PEMBANGUNAN DAERAH SUMATERABARAT. UEEN CITY DEVELOPMENT BANK. RCBC SAVINGSBANK. ROYAL INSURANCE CORPORATION OF BHUTANLTD.. RURAL DEVELOPMENT BANK. SABAH CREDITCORPORATION. SAMOA HOUSING CORPORATION.SEYLAN BANK. SIDBI VENTURE CAPITAL LTD.. SMALLAND MEDIUM ENTERPRISE DEVELOPMENT BANK OFTHAILAND. SMALL BUSINESS CORPORATION. SMALLINDUSTRIES DEVELOPMENT BANK OF INDIA. SMALLMEDIUM ENTERPRISE DEVELOPMENT BANK MALAYSIABHD. SME BANK, LTD. . SYNDICATEBANK. T BANKLIMITED. TEKUN NASIONAL, MALAYSIA. THAI CREDITGUARANTEE CORPORATION (THE). TMB BANK PUBLICCO. LTD.. TONGA DEVELOPMENT BANK. TRADE ANDDEVELOPMENT BANK OF MONGOLIA. TRNCDEVELOPMENT BANK. VANUATU AGRICULTUREDEVELOPMENT BANK. VIETNAM DEVELOPMENT BANK.VNESHECONOMBANK.

SB Corp runs specializedtraining programs for SMEs

The MSME Development Group of theSmall Business Corporation (SB Corp)recently conducted a two-day seminar on“Financial Management for SMEs” (FMT forSMEs). The seminar was attended by 42entrepreneurs from 28 firms most of whomare its clients. The seminar was designed

to equip participantsw i t h theunderstanding onthe different cycles inrunning a businessenterprise a n df u n d i n grequirements andfund flows of thebusiness. Topicsdiscussed duringthe event include

business enterprise financial cycle, funding theproduction cycle, sales cycle, operations cyclecash requirement, working capital requirementand cash flow management. Aside from thisseminar, SB Corp also offers other trainingprograms like enterprise enhancement,techniques in business performance analysisand computerized accounting system.

Dr. Ramon M. QuesadaChairman & CEOSB. Corporation

I n d i a ’ sCorporation Bank(Corpbank) hasopened i t sexclusive SMELoan Centre inChennai, Indiawhich will focuson s p e e d ydelivery of creditapart f r o mmaintaining closerapport with SMEcustomers in thearea through dedicated RelationshipManagers. During the event, 25

Corpbank opens SME LoanCenter, plans 20 in strategic areas

b e n e f i c i a r i e sreceived loana p p r o v a l samounting to Rs.22 crores and fourS M Een t rep reneurswere honored fora c h i e v i n gexcellence in theirrespective fields. The Bank alsoplans to open SMELoan Centres in

20 strategic locations in the country.

Mr. S. R. Bansal (center) is the Chairman& Managing Director of Corporation Bank

BJB allocates fundingfor the health sector

I n d o n e s i a ’ sBank JabarBanten (BJB)pays attention tothe health sectoras it believesthat health issomething veryprecious andinvaluable andwithout goodhealth, it would be difficult for someone to beproductive either in his/her economic as wellas social life. BJB has allocated at least Rp

4.09 billion to financehealth activities suchas improvement ofthe health facilitiesand infrastructure aswell as public services u c h a s t h econstruction ofhealth communitycenters, integratedhealth center for

infants and children, public toilets, clean waterfacilities, procurement of ambulance, blooddonation, and free medical service.

MarchPlanters Development Bank (53 years)Bank Nagari (52 years)China Development Bank (20 years)Pakistan Kuwait Investment Company (Pvt.)

Ltd. (35 years)T Bank Limited (2 years)National Pension and Provident Fund

(14 years)First Private Bank Limited (22 years)

AprilKorea Development Bank (60 years)Small Industries Development Bank

of India (24 years)Pak Oman Investment Company (Pvt), Ltd.

(13 years)Development Bank of Kazakhstan (13 years)House Building Finance Corporation

(62 years)India SME technology Services, Ltd (24 years)

Mr. Bien SubiantoroPresident/Director

Bank BJB


ASKI provides developmenteducation for migrant workers

Philippine-based Alalay Sa Kaunlaran, Inc(ASKI) was one of the recipients of the

Seylan Bank promotescountry-wide savings habit

Over 3,000 staffmembers fromSeylan Bank’s150 branches allover Sri Lankahave embarkedon a massivedoor - to -doorcampaign witht h e p r i m a r yo b j e c t i v e o ffurther promoting the savings habit among thegeneral public of Sri Lanka. Seylan Bank’ssenior management joined hands with the restof the staff and personally explained thefeatures of its two products – ‘Seylan Tikiri’and ‘Seylan SURE’. Seylan Tikiri, Sri Lanka’sfavourite minor savings account celebratedits 21st anniversary this year with a brand new

look and a worldof benefits onoffer. Launchedin 1992, it wasthe first everminor savingsaccount in SriLanka tointroduce a giftscheme. As itsn a m e r i g h t l y

suggests, Seylan SURE is a specially craftedscheme which brings gifts and cash rewardsto all current and normal savings (bothindividual and joint) account holders whomaintain a minimum balance of Rs. 20,000.Benefits of Seylan SURE focus on fourimportant areas of one’s life - marriage, thebirth of a child, attaining of senior citizen statusand financial assistance in case of surgery.

TMB posts strong performance despite economic challenges

Thailand’s TMB Bank reports earnings for thefiscal year 2013 by the Bank and itssubsidiaries, posting a profit from coreoperations before provisions of THB14,409million, an increase of 39% year on year and anet profit of THB 5,737 million. NPL ratio declinedsteadily to 3.87% from 4.10%. In preparationfor economic fluctuations, the Bank has setaside a special provision for the year ofTHB7,613 million, driving up its coverage ratiofrom 113% to 140% . Non-performing loans(NPL) were relatively at the same level as atthe end of last year while NPL ratio dropped to3.58% and 3.87 % for the Bank’s financialstatements and consolidated statementsrespectively. In addition to the regular businessprovision of THB 2,670 million, the Bank setaside a special provision to cope with economicuncertainties. In the second quarter of 2013, theBank has set aside THB 4,143 million as aspecial provision for countercyclical cushion. A

general provision ofT H B 8 0 0 millionw a s added i nresponse to theslowing economyin the fourth quarter.As a result, thecoverage ratio ofthe Bank and itssubsidiaries wasraised to 140%from 113%. TMBcontinues tomaintain a strongfinancial position,with a capital adequacy (CAR) under the BaselIII framework of 15.9 % and a Tier 1 (Tier 1)capital of 10.6%. Both are higher than theminimum Bank of Thailand’s requirements of8.5% and 6% respectively.

Mr. BoontuckWungcharoenDirector & CEO

TMB Bank

TDB tapsinternationalbond marketfor growth

Trade and Development Bank (TDB), theoldest and the largest corporate bank inMongolia, has successfully issued thecountry’s first-ever offshore CNY 700 millionbond listed in Singapore Stock Exchange onJanuary 14, 2014. This was the fifth time thatTDB tapped into the international bondmarkets after three successful seniorunsecured deals in 2007, 2010 and 2012,respectively, and a subordinated noteissuance in 2010. TDB is the first everMongolian bank to issue bonds in both USDand CNY, and the only Mongolian repeatbond issuer. The transaction met withoverwhelming demand and produced anorder book of CNY 1.4 billion, comprising of48 accounts and the issue has been a partof USD 700 million EMTN (Euro MediumTerm Note) program. The issuance of CNY700 million affirms market confidence inTDB’s strategy, financial strength andmanagement and the Bank’s standing in theinternational markets. It is an event of greatsignificance within the bigger picture offurther opening up Mongolia’s economy to theworld and strengthening TDB’s ability to growstrong. Moreover, the first dim sum bondfrom Mongolia provides an interestinginvestment alternative for CNY bondinvestors and further diversifies the offshoreRenminbi bond market.

Mr. RandolphKoppa

PresidentTDB

For more information: http://www.unepfi.org/training/risk_training/index.htmlFor registration online: http://www.unepfi.org/onlinetraining/index.php

For more information: http://www.unepfi.org/training/climate_change/index.htmlRegistration online: http://www.unepfi.org/onlinetraining/climate/

Ms. Alicia CaliwagChairperson &

PresidentASKIRolando Victoria (left) is the

Executive Director of ASKI

Partners in Empowerment, Advocacy andCommitment to Excellence (PEACE) Awardpresented by the Metrobank Foundation, Inc(MBFI) during its 35th anniversary celebrationin Metro Manila. ASKI is the implementingpartner of the MetroGold Financial Educationand Microfinance programs for 400 overseasFilipino workers (OFWs) in Singapore and400 family members in the Philippines. Todate, 322 OFWs have graduated from theprogram under the financial education, basic

entrepreneurship, a n d personalitydevelopment modules.

Mr. NihalJamayanneChairman

Seylan Bank, Ltd.


JFC-Micro, SME Bank to enhancecooperation on SME finance

Japan FinanceCorporation-MicroB u s i n e s s a n dIndividual Unit(JFC-Micro) andS M E B a n kMalaysia, bothADFIAP members,started businesscooperation whenS M E B a n krequested JFC-Micro to join at e c h n i c a lc o o p e r a t i o nproject launched in2 0 0 8 a n dsupported SMEBank to improve its practical credit analysismethods. Although the project wrapped upin 2011, JFC-Micro and SME Bank soughtfurther cooperation for the purpose of

Datuk Mohd. Radzip bin Mohd Yunus (center) is theManaging Director of SME Bank, while Mr. HisaoDaito (1st from right) is the Chief, International

Cooperation Office of the JFC-Micro.

Landbank supportsnational dairy industry

The Philippine’s local dairy industry is set toreceive a much-needed boost through the“Masustansyang Inumin para sa Likas naKalusugan” (MILK) credit assistance pro-gram – a partnership between the Land Bankof the Philippines (Landbank) and the National

Dairy Authority (NDA). The program will makeavailable financial and technical assistancefor the production, processing and market-ing activities of dairy cooperatives, farmersand other local industry stakeholders to helpimprove their productivity and increase theirincome. It likewise aims to help increase do-mestic milk production in the country. Underthe agreement, the NDA has committed P30million in credit support and technical assis-tance. Eligible borrowers under the programinclude cooperatives/associations, federa-tions, countryside financial institution, smalland medium enterprises and agri-businessentities. The loan amount may be used aspermanent working capital or fixed assets andlivestock acquisition.

Ms. Gilda E. Pico (center) isthe President & CEO of Lanbank

ZTBL’s noteworthy growthimproves entity rating

Zarai Taraqiati BankLimited improvedits entity ratings to‘A/A-2’, which iseight times betterthan its previousrating. Theimproved entityrating has beenassigned by JCR-VIS Credit RatingCompany on the

basis of Bank’s operational results of last 11months and present key performance indicators.Previously, its entity rating remained ‘B+/B’. Thecredit rating company has also assigned “AAA/A-l+” rating to Government GuaranteedObligations of the Bank. The rating companyacknowledged noteworthy changes in theZTBL’s technological infrastructure, total assetbase growth of Rs 138.6 billion, increase in totalnet revenues to Rs 6.6 billion and net profit toRs 1.85 billion.

Mr. Ihsan ul Haq KhanPresident

ZTBL

instead of just being at home. Mrs Kuiaha is aretired International Education Agency (IEA)teacher with over 30 years of experience inEarly Childhood Education. The fundingassistance from NDB will be used to build aproper Educational Play Bases LearningEnvironment, three children-sized toilets, workarea, library corner, sleep and rest corner,children’s play equipment, office equipment,etc.

from page 2, LDB Sri Lanka wins...

from page 1, NDB funds...

together with government, business and civilsociety in nation building.

The conference explored the current andincreasing individual pressure on energy, waterand food and their inter-relationship or the so-called “stress nexus”. Climate change, alongwith growing population and increasedprosperity, has further taken a toll on these vitalresources. Governments, developmentagencies, NGOs and businesses are enjoinedto work hand-in-hand to overcome thesechallenges together. For its part, ShellPhilippines committed to continue to helpshape the future of energy using advancedtechnologies and innovation to deliver cleanerenergy for a healthier environment. Topicsdiscussed during the conference included“Energy-Water-Food Stress Nexus”,“Implications for Asia”, A Closer Look into thePhilippines” and “Inspiring Solutions”.

from page 8, AC attends...

The ADFIAP e-Library is a re-pository of valuable referencematerials on developmentbanking and related topicscompiled over three decadesof existence of ADFIAP. Thecollection documents the writ-

ings and presentations of ADFIAP members about theirdevelopment work and achievements, their successesas well as their failures.

developing S M Ef i n a n c e a n dpromoting the growthof their respectivec l i e n t s . A s aconsequence, bothinstitutions reachedan agreement ondeveloping bilateralrelationship into abusiness partnershipand inked an MoUwhich aims to provideopportunities for bothinstitutions to shareinformation a n dexpertise related toSME finance. Both

institutions also have plans to offer SMEs inboth countries the opportunity to expand theirnetworks and meet potential businesspartners.

the two agencies in developing, structuring,financing, and competitively tenderingproposed BCDA projects. Under the MoU, DBPand BCDA shall explore potential engagementswherein DBP shall act as the financial advisorand funding arranger of BCDA for theirproposed projects.

from page 1, DBP supports...

market. Taking into account the certification,DBJ, with its diversified and customer-oriented series of financial instruments, willsupport its clients’ financial needs for newdevelopments and refurbishments.

from page 1, DBJ offers...

with 37 teams representing 21 bankscompeting. LDB is a full-fledged governmentbank opened to strengthen the local economyby supporting the entrepreneurs of the country.The Bank has initiated many loan schemes tosupport the small and medium entrepreneurs(SMEs) in the country. At present, the Bankhas branches in Colombo and in sevenstrategic locations which will soon includeJaffna to cater to the needs of the region.


CONFERENCE PROPER

DeDeDeDeDevFin LinksvFin LinksvFin LinksvFin LinksvFin Links

The term ‘ innovat ive f inancing fordevelopment’ was coined in the early 2000sand since then i ts use has becomecommonplace in the developmentdiscourse. The term has come to meanmany things to many people. As the UNSecretary-General’s 2009 progress reporton innovative sources of finance fordevelopment notes, “the concept ofinnovations now extends to such diverse

forms as thematic global trust funds,publ ic guarantees and insurancemechanisms, equity investments, growth-indexed bonds, countercyclical loans,distr ibut ion schemes for globalenvironmental services, microfinance andmesofinance, and so on” (United Nations2009). Please follow the link below forfurther reading:Source: http://www.undp.org/content/dam/u n d p / l i b r a r y / P o v e r t y % 2 0 R e d u c t i o n /Development%20Cooperation%20and%20Finance/InnovativeFinancing_Web%20ver.pdf

This paper examines trends in developmentfinance flows and their implications forefforts to reach agreement on a post-2015framework. The financing modelunderpinning the original MillenniumDevelopment Goals (MDGs) focused largelyon domestic resource mobilisation andofficial development assistance (ODA). Theimplicit underlying assumption was that,when countries were unable to mobilisesufficient domestic resources to finance

progress towards the MDGs, the gap shouldbe filled either with ODA or through debtcancellation. This implicit assumption aboutburden sharing underpinned the 2005Gleneagles Commitment to increase aid andcancel multilateral debt. For further reading,please follow the link below.

Source: http://www.odi.org.uk/sites/odi.org.uk/files/odi-assets/publications-opinion-files/7905.pdf

A Social Impact Bond, also known as a Payfor Success Bond or a Social Benefit Bond,is a contract with the public sector in which acommitment is made to pay for improvedsocial outcomes that result in public sectorsavings. The first Social Impact Bond waslaunched by Social Finance UK in September2010. Advocates of these performance-based investments claim that they encourageinnovation and tackle challenging socialissues. According to advocates, new andinnovative programs have potential forsuccess, but often have trouble securinggovernment funding because it can be hard

to rigorously prove their effectiveness. Thisform of financing allows the government topartner with innovative and effective serviceproviders and, if necessary, privatefoundations or other investors willing to coverthe upfront costs and assume performancerisk to expand promising programs, whileassuring that taxpayers will not pay for theprograms unless they demonstrate successin achieving the desired outcomes.Theexpected public sector savings are used asa basis for raising investment for preventionand early intervention services that improvesocial outcomes.Source: www.wikipedia.org

Concept of aDevelopment Bank

To analyze the nature of a developmentbank, one can start by asking: What is adevelopment bank? What makes i tdifferent from other types of banks? Thedifferences with other banks help one tounders tand and to de f ine thedevelopment bank concept. The types ofbank one knows best are the commercialbank and the investment bank. How dothey differ from a development bank?Commercial banks provide short-termcredit which is re-payable in 30 to 90days. Most of the commercial bank loansare for a period of less than one year.Short-term loans are normally defined ascredits with a maturity of up to one year.Investment banks in Great Britain and theAnglophone countries are commonlycalled “merchant banks.” These banksspecialize in raising long-term fundsthrough the underwriting and issuing ofsecurit ies – stocks and bonds – foralready established enterprises or forpublic entit ies. Development financeinstitutions, like investment banks, alsooperate in the field of long-term financing,but mainly through extending long-termloans for development project financing. In this respect, investment banks sharesome common character is t ics wi thdevelopment banks, but in other respectsthey are qui te d i f ferent . One basicdifference is that investment banks do notmake it their policy to give priority tomob i l i z ing long- te rm f inanc ing fo rdeve lopment p ro jec ts nor do theya t tempt to es t imate the economicbenefits that a project is expected togenerate.

This article is available upon request fromADFIAP. P l e a s e emai [email protected]

Source : P r inc ip les and Prac t i ces o fDevelopment Banking, Volume 1.

Innovative Financingfor Development:

what is it all about?

Who foots the bill after 2015? What NewTrends in Development Finance

Mean for the Post MDGs?

What is a social impact bond?

Development FinanceChallenges 2010 – 2015

This paper, published by the Organizationfo r Economic Coopera t ion andDevelopment (OECD), looks at theDevelopment Assistance Committee’s(DAC’s) collective delivery against keyglobal development finance challengesstarting with the emerging lessons fromthe global economic crisis; progress withofficial development assistance (ODA)

commitments and c la ims on ODA,2010-2015; s tock tak ing o f recen tthematic initiatives; post-Copenhagenimplications for development finance;mobil ising domestic resources; andinnovative sources of finances. Pleasefolow the fol lowing l ink for fur therreading.Source: http:/ /www.oecd.org/dac/stats/45836579.pdf

Using the Global ReportingInitiative's (GRI) reporting guide-

lines, your Secretariat is nowequipped with necessary tools

to help you develop and organizeyour sustainability reports. For

intetests, please email theADFIAP Secretariat [email protected].


EXECUTIVE MOEXECUTIVE MOEXECUTIVE MOEXECUTIVE MOEXECUTIVE MOVESVESVESVESVESMr. Yaduvendra MathurMr. YaduvendraMathur is thenewly appointedChairman andM a n a g i n gDirector ofExport-ImportBank of India(Exim Bank).Prior to thisappointment, Mr.Mathur was

Chairman and Managing Director of RajasthanFinancial Corporation since 2011. A First ClassGraduate in Economics and an MBA in Finance,Mr. Mathur has worked with Golden Tobacco andAssociated Cement Companies in Mumbaibetween 1982 – 1984 before joining the IndianRevenue Services (Income Tax) in 1984 and thenthe IAS in 1986, topping his batch. He has hadlong stints in various positions in the FinanceDepartment including Principal Secretary Finance,Government of Rajasthan. During his postingsunder the Department of Economic Affairs (2001-2003) at Cote d’Ivoire and Tunisia, Mr. Mathur

worked as Assistant to the Executive Director(representing India, Norway, Denmark, Sweden,Finland and Switzerland) of African DevelopmentBank. He was then actively engaged with theExport-Import Bank of India in enhancing andpromoting business opportunities for Indiancompanies in the African continent throughTechnical Cooperation Agreements. As EnergySecretary of Rajasthan for over three years, Mr.Mathur contributed in the setting up of threegreenfield power plants in the state. He was alsoPlanning Secretary, PHED Secretary and DirectorGeneral Revenue Intelligence in Government ofRajasthan. He also has experience as ManagingDirector of a Textile Mill at Bhilwara and asChairman of Indira Gandhi Canal Board. Mr.Mathur was Collector & District Magistrate ofBhilwara and Bharatpur and has also served forover three years as Senior Deputy Director atthe Lal Bahadur Shastri National Academy ofAdministration, Mussoorie. Mr. Mathur hasinterests in entrepreneurship development,infrastructure financing, regulatory issues and inbehavioural sciences.

Shri M. S. RaghavanShri M. S. Raghavan took overas Chairman & ManagingDirector of IDBI Bank Ltd. on July5, 2013. Prior to the currentassignment, Shri Raghavan wasposted as Executive Director ofthe Bank of India, with effect fromJanuary 1, 2012. Born on June8, 1955, Shri Raghavan, ascience graduate and a post-graduate diploma holder inmanagement and financialmanagement, joined the IndianOverseas Bank (IOB) as aProbationary Officer on October 11, 1976 andheld several distinguished positions in theBank’s hierarchy. In a career spanning 36 yearswith IOB, Shri Raghavan held importantpositions in the areas of credit, operations and

information technology. His professionalexpertise encompasses the areas of human

resource management, riskmanagement, corporatecredit, information technologyand compliance. ShriRaghavan’s contribution to thebanking system, especiallywith regard to IT, is widelyacclaimed by the bankingcommunity. At present, ShriRaghavan is a member of (a)working group on model e-governance plan for IBA underthe Department of Financial

Services (b) IBA Committee on paymentsystems & banking technology for the year2012-13 (c) Core Group of IDRBT FinancialServices Technology Consortium and (d)Executive Board of IDRBT Indian BanksTechnology Consortium.

Mr. Navin Kumar MainiMr. Navin Kumar Mainiis Deputy ManagingDirector, in-charge ofthe Small IndustriesDevelopment Bank ofIndia (SIDBI), thepremier financialinstitution for micro,small and mediumenterprises (MSMEs) ofIndia. He was erstwhileCEO of the Credit

Guarantee Fund Trust for Micro and SmallEnterprises (CGTMSE). He has been on the Boardsof various national-level organizations, state financialcorporations, regional venture capital funds,microfinance institutions (MFIs) and industrial unitsover the years. Presently, Mr. Maini is the Chairmanof (i) SIDBI Venture Capital Ltd. (ii) SIDBI TrusteeCompany Ltd. (iii) India SME Asset ReconstructionCompany Ltd and (iv) India SME TechnologyServices Ltd. He is also a Member on the (i) ApexCommittee of SIDBI Innovation & Incubation Centre(SIIC), Indian Institute of Technology, Kanpur, (ii)Governing Body, Entrepreneurship DevelopmentInstitute of India, Ahmedabad and (iii) Board of ‘TheMontreal Group’ of Business Development Bank ofCanada (BDC). Mr. Maini attended variousinternational training programs and participated ordelivered talks in various international seminars inthe fields of development banking and microfinance. Mr. Maini is a graduate from St. Stephen’s College,Delhi and holds a Degree in Law from DelhiUniversity. He holds postgraduate degree inManagement and International Trade, besides beinga Certified Associate of Indian Institute of Banking &Finance (CAIIB).

Ms. Parichatara L. SirivongMs. Parichatara L. Sirivong is thenewly-appointed Acting Presidentof the Small and MediumEnterprise Development Bank ofThailand (SME Bank). Ms.Parichatara finished her ExecutiveMBA from the Kasetsart Universityand Bachelor ’s Degree inAccounting from the ThammasartUniversity in Thailand. Sheattended the training course fordirectors from the Thai Institute of Directors;Chief Financial Officer’s (CFO) course fromthe Federation of Accounting Professions as

Mr. Imran Samad

well courses on Money andBanking from the ChaseManhattan Bank, New York, USA,and Course Bourse Game withCiti Bank Co., Ltd. Ms.Parichatara initiated collaborativejoint venture activities betweenSME Bank and foreigncompanies. In addition, sheassociated SME Bank with foreignand domestic banks to initiatesecuritization business from

Securities and Exchange CommissionThailand and The Stock Exchange of Thailand.

Mr. Imran Samad hasbeen associated withthe Bank of Khyber forthe last few years andis currently servingas Acting ManagingDirector of the Bank.He has beenassociated with thebanking professionfor the last 30 years.

After his MBA, he started his career with PICICas a financial analyst and worked in variouscapacities dealing with industry and finance. Hehas a rich experience of dealing with local andmultilateral agencies. His expertise in corporateand retail banking over the years in various bankshas earned him a reputation in areas of businessdevelopment and organizational turnaround.Recognized as an effective team leader, he isauthor of various articles and also known asleading resource person on banking and finance.


37th ADFIAP Annual Meetings to tackle dev’tbanking best practices & future trends

About a hundreddelegates – members,partners and invitedguests – will convene inMoscow, Russia onApril 23-25, 2014 forthe 37th ADFIAP AnnualMeetings with thetheme “DevelopmentBanking BestPractices and Future Trends”. The AnnualMeetings will be hosted by Russia’s StateCorporation Bank for Development andForeign E c o n o m i c Affairs(Vnesheconombank).

Highlighting the event will be the AnnualConference proper, the 79th Board of DirectorsMeeting, the 15th Extraordinary Meeting of theGeneral, the Gala and Awards Night, theDelegate-Meets-Delegates Session and theFellowship program.

The ConferenceProper will bedivided into four(4) plenarysessions wherein its session,topics ondevelopmentb a n k i n g /financing, bestpractices and future

trends will be discussed and dissected bythe speakers and delegates. PlenarySession 1 will deal on financial inclusion;Plenary Session 2 tackles infrastructurefinance; Plenary Session 3 is on greenfinance and Plenary Session 4 will be aCEO panel discussion where there will bepresentations and insights on“Development Banking in the Future.”

ADFIAP CONSULADFIAP CONSULADFIAP CONSULADFIAP CONSULADFIAP CONSULTING NEWSTING NEWSTING NEWSTING NEWSTING NEWS

In l ine withA D F I A P ’ sadvocacy ons u s t a i n a b l eenvironmentaldeve lopmen tand as one of itsmajor tasks as apartner of theEU grant-fundedS M A R TM y a n m a rProject, ADFIAP Consulting (AC) conducteda seminar-workshop on “Green Financing forBanks” for the members of the MyanmarBankers Association (MBA) on February 17-19, 2014 at the MBA Building in Yangon,Myanmar.

The training course introduced theconcept of sustainable consumption andproduction (SCP) and its relevance to banksin promoting investments in environmentally-friendly processes and systems such ascleaner production, waste minimization,resource conservation, energy efficiency,pollution prevention and control, amongothers, with the aim of enabling businessesto reduce their environmental footprints, andin the process, comply with national andinternational environmental laws. The programalso served as a platform for sharing

experiencesand bestpractices ong r e e nf i n a n c i n gi n i t i a t i v e sundertaken byA D F I A P -m e m b e rbanks forp o s s i b l ereplication. In

addition, the seminar included a workshopthat enabled the participants to do a hands-on evaluation of green projects under a risk-mitigated environment and designeddemand-driven lending programs that willspur the birth of new financing schemes tosupport the SCP activities of businesses.

A total of 33 participants representing19 Myanmar financial institutions attendedthe seminar workshop. The SMARTMyanmar http://www.smartmyanmar.org/ isa 3-year project that aims to prepareMyanmar SMEs in the garment sector toproduce sustainable products that meet theEuropean environmental standards therebymaking the SMEs more competitiveparticularly in the European and Asianmarkets.

AC conducts green banking seminar for Myanmar Bankers Association

AC briefs SMARTMyanmar study

mission participants

ADFIAP Consulting (AC) conducted anorientation program for the participants ofthe SMART Myanmar Project study missionto Germany on February 20-21, 2014 at theUMFCCI Building in Yangon, Myanmar. Theoverall objective of the program is to briefthe participants on sustainable consumptionand production (SCP) best practiceexamples of German associations,ministries and financial institutions and onthe promotion of social responsibility andenvironmental sustainability for possiblereplication in Myanmar.

Participants of the study mission arecomposed of representatives from thegovernment ministries, business supportorganizations and financial institutions aswell as representatives from the Union ofMyanmar Federation of Chamber ofCommerce and Industry (UMFCCI),Myanmar Garments ManufacturingAssociation (MGMA), and the MyanmarBankers Association (MBA).

The study mission is among theactivities of the 3-year EU-funded SMARTMyanmar P r o j e c t http://www.smartmyanmar.org/ which stands forSMEs for Accountability, Responsibility andTransparency. The mission is scheduled tobe held on March 23 to 29, 2014 inGermany.

ASSOCIAASSOCIAASSOCIAASSOCIAASSOCIATION NEWSTION NEWSTION NEWSTION NEWSTION NEWS

AC attendsfood, water &energy forum

On invitation of the European Chamber ofCommerce of the Philippines (ECCP), oneof ADFIAP’s partners in the SMART Cebuproject, the ADFIAP Consulting (AC) groupattended the “Powering Progress Together”conference on February 6, 2014 at theManila Hotel. The event, which is aligned withADFIAP’s sustainable developmentadvocacy, was hosted by Shell Philippinesagainst the backdrop of 100 years of thepetroleum company in the country, working


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