AlexBank Loan (IFC-38160)

Regions
  • Middle East and North Africa
Where the impacts of the investment may be experienced.
Countries
  • Egypt
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
Jan 26, 2017
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 Alexandria
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)
$ 100.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. 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, converted to USD$. Please see updated project documentation 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

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

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
  • International Finance Corporation (IFC)
Private Actors

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

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/