Sydney, December 23, 2025— International Finance Corporation (IFC), a member of the World Bank Group focused on the private sector, today announced a partnership with BRED Bank Vanuatu and BRED Bank Solomon to help institutional commercial customers access financing for their businesses and productive assets—supporting growth and job creation in Vanuatu and Solomon Islands.
SMEs and commercial companies are crucial drivers of economic growth and jobs across both countries. However, businesses in these countries face increasing challenges in accessing the capital they need to innovate and expand, with widening financing gaps exacerbated by natural disasters.
To support these vital businesses, IFC will provide an unfunded risk sharing facility to BRED Vanuatu and Solomon, with a maximum IFC risk amount of $10 million under IFC’s Small Loan Guarantee Program. The financing, which is supported by the International Development Association’s (IDA) Private Sector Window, will enable both banks to increase the value of their business finance loans. IFC will also provide advisory services to help them scale up their commercial lending.
IFC estimates that the expanded institutional commercial lending will generate economy-wide impacts in both countries, driving job creation directly within businesses and indirectly through their supply chains and wider economic activity.
“As the leading bank in Vanuatu and a growing presence in Solomon Islands, BRED is uniquely placed to help drive growth and resilience across SME and commercial markets. BRED and IFC have a long-standing global strategic partnership with a successful track record of collaborating on projects,” said Owen Thomson, CEO of BRED Solomon Islands. “We welcome this investment, which will enable us to expand our business-segment financing portfolio in Vanuatu and Solomon Islands, supporting the small businesses that are fundamental to growth in these economies.”
"Many SMEs in Vanuatu and Solomon Islands struggle to access the capital they need to grow, hire, innovate, and fully contribute to their economies,” said Allen Forlemu, IFC’s Acting Regional Vice President for Asia and the Pacific. “With this investment, IFC aims to increase lending to SMEs and commercial segment borrowers in Vanuatu and Solomon Islands and reduce the financing gap in both countries—clear actions to drive economic growth and create jobs.”
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2025, IFC committed a record $71.7 billion to private companies and financial institutions in developing countries, leveraging private sector solutions and mobilizing private capital to create a world free of poverty on a livable planet. For more information, visit www.ifc.org.
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About the IDA Private Sector Window
The International Development Association’s Private Sector Window (IDA PSW) was launched in 2017 to catalyze private sector investment in the poorest and most fragile countries. Recognizing the key role of the private sector in creating jobs and promoting economic transformation, the window provides a source of co-investment funding and guarantees to de-risk private investments supported by the World Bank Group’s International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA). The IDA PSW is an option when there is no commercial solution and the Bank Group’s other tools are insufficient. For more information, visit: http://ida.worldbank.org/psw
About BRED (Vanuatu) Limited
BRED (Vanuatu) Limited is part of the second largest banking group in France, ‘Banque Populaire’, which also has outlets in New Caledonia, Tahiti, Vanuatu, Fiji and Solomon Islands.
For more information, visit: https://www.bred.vu/, https://www.bred.sb, https://www.bred.fr
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