Sogebank SME Loan (IFC-42952)

Countries
  • Haiti
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
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
Sep 25, 2019
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
SOCIETE GENERALE HAITIENNE DE BANQUE SA
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)
$ 20.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. 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, converted to USD$. 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

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

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
  • International Finance Corporation (IFC)
Private Actors
  • SOCIETE GENERALE HAITIENNE DE BANQUE SA -- Financial Intermediary

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

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/