BRAC Afghanistan Bank (MIGA-6938)

Countries
  • Afghanistan
Where the impacts of the investment may be experienced.
Financial Institutions
  • Multilateral Investment Guarantee Agency (MIGA)
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
C
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.
Borrower
ShoreCap International Ltd
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)
Guarantee
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 0.22 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 @ MIGA website

Updated in EWS Oct 30, 2019

Disclosed by Bank Oct 16, 2018


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Project Description

According to the bank website, "The investors have applied for a MIGA guarantee of up to $225,000 (90 percent of additional equity of $250,000) for a period of up to ten years against the risks of transfer restriction, expropriation, and war and civil disturbance. ShoreCap invested $1 million into BAB in 2006 which was also covered by aMIGA guaranteeagainst the same risks.

SCI along with three foreign sponsors, including theInternational Finance Corporation (IFC), a World Bank Group member, will invest additional capital into BRAC Afghanistan Bank. The additional funds are required to meet the Afghanistan Bank's $5 million minimum bank capital requirement; to fund infrastructure investments in additional branches, automated teller machines and point of sale devices; and toleverage a small business loan portfolio which is expected to grow to almost $50 million by the end of 2008."

Investment Description
  • Multilateral Investment Guarantee Agency (MIGA)
Private Actors
  • ShoreCap International Ltd -- Implementing Company
Contact Information

No contact information provided at the time of disclosure.

ACCOUNTABILITY MECHANISM OF MIGA

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/