Pacific Legal Network advises on landmark IFC and BRED risk sharing facility in the Pacific
- Pacific Legal Network
- 7 minutes ago
- 1 min read
Pacific Legal Network is proud to have supported International Finance Corporation (IFC), BRED Bank Vanuatu and BRED Bank Solomon Islands on a new partnership to expand small and medium enterprise (SME) financing in Vanuatu and Solomon Islands.
The transaction, signed in Sydney, establishes an unfunded risk-sharing facility under IFC’s Small Loan Guarantee Program, with a maximum IFC risk exposure of USD 10 million. Supported by the International Development Association’s (IDA) Private Sector Window, the facility enables BRED Bank’s operations in both countries to increase the value of business finance loans and extend credit to underserved SMEs.
IFC estimates the expanded commercial lending will generate significant economy-wide impacts, supporting job creation both directly within businesses and indirectly through supply chains and broader economic activity.
PLN’s involvement reflects its core strength as a Pacific-focused, multi-jurisdictional legal network. Our team worked closely with local counsel in Honiara, IFC counsel in Washington DC, and international counsel in the United Kingdom and Vanuatu to deliver a first of its kind risk-sharing facility across Solomon Islands and Vanuatu.
PLN also advised IFC and BRED on navigating complex regulatory and banking-compliance requirements across both jurisdictions, leveraging our deep knowledge of and long-standing relationships with local banking regulators.
We are proud to have helped bring this transaction to life and to support initiatives that advance financial inclusion, SME growth and sustainable economic development across the Pacific.
For more information: https://www.ifc.org/en/pressroom/2025/ifc-bred-bank-vanuatu-and-bred-bank-solomon-partner-to-support-sme-growth-and-jobs
