The International Finance Corporation (IFC), a member of the World Bank Group focused on the private sector, has announced a partnership with BRED Bank Vanuatu and BRED Bank Solomon to enhance financing access for institutional commercial customers. The initiative aims to support business growth and job creation in Vanuatu and the Solomon Islands, where SMEs and commercial companies play a central role in driving economic development. Access to capital has been a persistent challenge for businesses in both countries, with financing gaps exacerbated by natural disasters and other economic pressures.
Under this partnership, IFC will provide an unfunded risk-sharing facility to BRED Vanuatu and BRED Solomon, with a maximum risk coverage of $10 million through IFC’s Small Loan Guarantee Program, supported by the International Development Association’s Private Sector Window. This financing will enable the banks to expand their business loans, while IFC will also provide advisory services to strengthen the banks’ capacity to scale up commercial lending effectively.
The expanded lending is expected to generate significant economic impacts, creating jobs directly within businesses and indirectly through supply chains and broader economic activity. Owen Thomson, CEO of BRED Solomon Islands, highlighted the strategic position of BRED to support SMEs and commercial markets, noting the long-standing global partnership with IFC as a foundation for this initiative. Allen Forlemu, IFC’s Acting Regional Vice President for Asia and the Pacific, emphasized that increased access to capital will help SMEs innovate, grow, and contribute more fully to the economies of Vanuatu and Solomon Islands.
IFC, the largest global development institution focused on the private sector in emerging markets, operates in over 100 countries, leveraging capital and expertise to create market opportunities. In fiscal year 2025, IFC committed $71.7 billion to private companies and financial institutions, promoting private sector solutions that contribute to economic development and poverty reduction.
The IDA Private Sector Window, launched in 2017, provides co-investment funding and guarantees to catalyze private sector investment in fragile and low-income countries, supporting projects where commercial solutions are insufficient. BRED (Vanuatu) Limited, part of the French Banque Populaire group, operates across several Pacific countries and will leverage this partnership to expand its lending to SMEs and commercial clients, driving inclusive economic growth in the region.s
