AlexBank Loan (IFC-38160)

Regions
  • Middle East and North Africa
Geographic location where the impacts of the investment may be experienced.
Countries
  • Egypt
Geographic location 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
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
FI
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Jan 26, 2017
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Bank of Alexandria
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
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, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 100.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 100.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Jul 31, 2018

Disclosed by Bank May 31, 2016

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

The project consists of a senior loan to Bank of Alexandria S.A.E (AlexBank or the Bank) to target small and medium enterprises (SMEs) and sustainable energy finance (SEF). AlexBank is one of Egypt's leading private sector banks.

The project is expected to have the following development impact:
(i) The project will support the Bank in meeting the FCY needs of its clientele base as well as expanding its SME outreach, thus supporting to improve access to finance for a chronically underserved market segment.
(ii) The project will help the Bank to grow SEF, which is in line with the increased focus on reducing energy consumption in Egypt.

Additionality is clear since:
(i) The project will provide AlexBank with long term FCY funding, which in not readily available in the market due to the current context of foreign exchange shortages that is constraining private sector activity.
(ii) The project will strengthen IFC's relationship with ISP as the project will support meeting the funding requirement of its subsidiary in Egypt.
(iii) IFC's investment will support the Bank in promoting SEF lending as part of its product offering. This will help improve the competitiveness of the clients benefiting from the SEF loans through supporting their capital investments targeting energy consumption reduction and cost savings.

People Affected By This Project
People Affected By This Project refers to the communities of people likely to be affected positively or negatively by a project.

The project is expected to have the following development impact:
(i) The project will support the Bank in meeting the FCY needs of its clientele base as well as expanding its SME outreach, thus supporting to improve access to finance for a chronically underserved market segment.
(ii) The project will help the Bank to grow SEF, which is in line with the increased focus on reducing energy consumption in Egypt.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

Established in 1957 and a proud member of the Intesa San Paolo Group (ISP or the Group) since 2007, today AlexBank is one of Egypt’s leading private sector banks.

As one of the largest private sector banks in terms of total assets and No.1 in retail assets market share, AlexBank also owns one of the largest private sector branch networks in the country, with a total of 170 branches located in every major Egyptian governorate and more than 5,000 employees.

As the only Italian commercial bank in the Middle East and North Africa region, AlexBank is proud to serve over 1.6 million customers, playing a vital role in Egypt’s economic present and future.

Everyday AlexBank serves customers from all segments and business areas by providing value added financial products, services and solutions to corporate, SME, and retail customers. AlexBank is in the midst of an ambitious development plan to bring its branch design, infrastructure and service model in line with the global standards of the Group.


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

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/

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How it works