BoP Sub-Debt (IFC-37270)

Countries
  • Palestine, West Bank, Gaza
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
Active
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
Jan 5, 2016
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
BANK OF PALESTINE PLC
The holder of the loan, grant, or other investment.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 75.00 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 Aug 1, 2018

Disclosed by Bank Dec 4, 2015


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Project Description

This project finances assistance to Bank of Palestine in order to strengthen its capital base and help maintain its position as the market leader in West Bank and Gaza. This includes helping it to strengthen its risk management framework, corporate governance, and develop new products to expand access to finance and banking services for small and medium-size enteprises and women.

Investment Description
  • International Finance Corporation (IFC)

This project comprises of an investment in the form of a sub-debt of up to US$75 million to Bank of Palestine qualifying as Basel II-Tier II capital with a tenor of 10 years including a grace period of 5 years. BoP was one of the first banks to be established in Gaza in 1960. BoP is currently the largest national bank in WB&G operating as a universal bank with the largest network of 56 branches and offers a broad range of products and services to corporate, Small and Medium Enterprises, retail and micro customers. The Bank is listed on Palestine Securities Exchange with the main shareholder, the Shawa family, directly owning 25.7% of BoP’s capital. Other major shareholders include Palestine Investment Fund, Blakeney Investment Fund (UK-Based), Qais al-Ghanim Group (Kuwait) and IFC. IFC first investment in BoP was in 2008, where IFC invested US$12.5 million for 5% stake in the bank. Thereafter, IFC entered into a US$8 million trade finance line and two advisory projects aimed at establishing Bank's risk management framework, creating Corporate Governance code and developing new products.

Private Actors

Bank of Palestine was one of the first banks to be established in Gaza in 1960. BoP is currently the largest national bank in WB&G operating as a universal bank with the largest network of 56 branches and offers a broad range of products and services to corporate, Small and Medium Enterprises, retail and micro customers.

The Bank is listed on Palestine Securities Exchange with the main shareholder, the Shawa family, directly owning 25.7% of BoP’s capital. Other major shareholders include Palestine Investment Fund, Blakeney Investment Fund (UK-Based), Qais al-Ghanim Group (Kuwait) and IFC.

Contact Information

Hashim Shawa
Bank of Palestine
General Management Head Office
P.O. Box 471, Ramallah, Palestine
Telephone: +970 2 2970990
Fax: +970 2 2970980

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/