Sogebank SME Loan (IFC-42952)

Countries
  • Haiti
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
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
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
Sep 25, 2019
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
SOCIETE GENERALE HAITIENNE DE BANQUE SA
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)
$ 20.00 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.
Loan Amount (USD)
$ 20.00 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 Aug 14, 2019

Disclosed by Bank Aug 6, 2019

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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.

According to IFC website,  The Project aims to fund the growth of Sogebank’s subsidiary, Société Générale de Solidarité S.A., the largest microfinance institution (MFI) in the country and another existing IFC client, to support Sogesol’s lending program to small enterprises in Haiti, including to agri-enterprises in rural areas. 

The project is expected to have strong development impact in terms of:

(1) supporting the growth of the productive sectors of the Haitian economy by expanding and increasing access to finance to small enterprises.

(2) promoting growth in agribusiness, a key economic sector representing 22% of GDP. It is estimated that only 28% of farmers have bank accounts and 19% received a credit for agricultural purposes

(3) strengthening the Haitian financial sector's competitiveness through capacity building, demonstration and replication channels.

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 strong development impact in terms of: (1) supporting the growth of the productive sectors of the Haitian economy by expanding and increasing access to finance to small enterprises. The SME finance forum estimated that the total credit gap in Haiti amounts to almost US$2.5 billion, with 49% of MSMEs reporting that they are either under or unserved by financial institutions. (2) promoting growth in agribusiness, a key economic sector representing 22% of GDP. It is estimated that only 28% of farmers have bank accounts and 19% received a credit for agricultural purposes. (3) strengthening the Haitian financial sector's competitiveness through capacity building, demonstration and replication channels.

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.

Sogebank is the second largest bank in Haiti, with market shares of 28% and 27% in loans and deposits, respectively. The bank’s shareholding is very diverse with over 250 shareholders. The top 5 largest shareholders, Roger Jaar (7%), Joan Perry (6%), Les Assurances Leger S.A. (6%), Robert Moscoso (5%) and Donna Moscoso (4%) collectively hold 28% of the shares in Sogebank.


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.

Société Générale Haitienne de Banque S.A.
Gladys Coupet
Chief Executive Officer
(509) 2815 5124
gcoupet@sogebank.com
Port Au Prince, Haiti
www.sogebank.com

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