Loan Participation

The PIDB and one or more co-lenders may finance a Bank project together. Each lender makes its loan or grant on its own terms using its own documentation. The PIDB acts as the lead agency in most cases, providing substantial input to the co-lenders during the preparation of the project. The PIDB and the co-lenders enter into a co-lenders´ agreement (Memorandum of Understanding) that defines the areas of cooperation and describes the services (e.g. administration of the loan, usually against a fee. Loan Participation provides an option for participating banks to share the risks and benefits of larger and more sophisticated financing and credits. This service also enables PIDB to participate in projects and businesses that are regional in scope which is the main focus and objective of PIDB.

Procedures:

• Submit your loan application and business proposal to PIDB or any of the lending institutions or commercial banks in your respective locations.
• Consult with PIDB or any of the lending institutions in the region on if the financing or loan requested is substantial.
• The banks will notify you if a group of banks are willing to participate.