AIB Equity (IFC-37054)

Regions
  • South Asia
Where the impacts of the investment may be experienced.
Countries
  • Afghanistan
Where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Bank Risk Rating
FI
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Nov 2, 2015
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Afghanistan International Bank
The holder of the loan, grant, or other investment.
Sectors
  • Finance
  • Technical Cooperation
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Equity
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 10.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Jul 31, 2018

Disclosed by Bank Sep 30, 2015


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Project Description

This project finances an equity stake in Afghanistan International Bank, as well as a comprehensive advisory services package, to help further institutionalize its shareholding, strengthen its operational risk management, and build its capacity for commercial lending in diversified sectors.

Investment Description
  • International Finance Corporation (IFC)

The project entails IFC taking an equity stake of up to 15% in Afghanistan International Bank (AIB) in two tranches. The initial tranche is for an equity stake of 7.5%, purchased equally from AIB’s two main sponsor shareholders. The second tranche comprises of an IFC option to increase its equity stake by an additional 7.5% within two years of its initial investment in AIB by subscribing to new shares issued by AIB. Afghanistan International Bank is a local Afghan private sector bank established in March 2004. It is headquartered in Kabul. As of December 2014, it had 33 branches, 2 cash outlets, 59 Automated Teller Machines, and 136 Point of Sale devices, across 10 provinces in Afghanistan. AIB is currently owned 46.25% each by two local groups - Horizon Associates LLC and Wilton Holdings Limited (together the two main sponsor shareholders), and 7.5% by the Asian Development Bank. Horizon, Wilton and the Asian Development Bank are also among the four founding shareholders that established AIB in March 2004 with a shareholding of 25% each.

Private Actors

Afghanistan International Bank (“AIB” or “the Bank”) is a local Afghan private sector bank established in March 2004. It is headquartered in Kabul. As of December 2014, the Bank had 33 branches, 2 cash outlets, 59 Automated Teller Machines (“ATMs”), and 136 Point of Sale (“POS”) devices, across 10 provinces in Afghanistan. AIB’s banking services include corporate/commercial, small business and retail banking, as well as electronic and Islamic banking. With total assets of US$964.2 million, AIB has the largest market share in the Afghan banking sector of approximately 23%.

Contact Information

Mr. Guy Mallet
Chief Executive Officer
Afghanistan International Bank
Shahr-e-Naw, Haji Yaqoob Square
Shahabudin Watt, Post Box 2074
Kabul, Afghanistan
Telephone: +93 (0) 20550255

ACCOUNTABILITY MECHANISM OF IFC
The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/