DCM Arab African International Bank (IFC-48908)

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
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
May 29, 2024
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
ARAB AFRICAN INTERNATIONAL BANK
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)
$ 300.00 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 Mar 13, 2025

Disclosed by Bank Sep 29, 2024

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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 the Bank’s website, the proposed project involves an IFC investment of a 5-year senior sustainability bond of up to (i) US$300 million in Arab African international Bank’s (AAIB or the Bank) US$500 million sustainability bond program, to support the Bank’s expansion of green and sustainable related projects (the Project), and (ii) up to $50 million uncommitted trade finance facility under the Global Trade Finance Program (“GTFP”). In addition, it is expected to be supported by the IFC-BMWK Scale up Climate Finance through Greening the Financial Sector (BMWK) Program as described in the Blended Finance Section.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

The Project is an investment in AAIB’s Sustainability Bond issuance. Proceeds from the issuance will support eligible green assets, and MSMEs. The Project will not support Excluded Activities, coal-related activities, mining, oil and gas, or any other Higher-Risk activities that may include: (a) involuntary resettlement; (b) potential adverse impacts on Indigenous Peoples; (c) significant risks to or impacts on the environment, community health and safety, biodiversity, cultural heritage; (d) risk of significant retrenchment or (e) significant occupational health and safety risks.

The main E&S risks of the Project relate to the Bank’s capacity to correctly implement its newly established ESMS to manage the E&S risks associated with the sub-projects supported through the Project proceeds. Overall, the E&S risk associated with the asset class to be supported by IFC is considered medium, and likely to entail medium adverse E&S risks and impacts that are few, generally site-specific, largely reversible and can be readily addressed through mitigation measures. The Project has therefore been categorized as FI-2 according to IFC’s Sustainability Policy.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

The proposed project involves a 5-year senior sustainability bond of up to US$300 million to support AAIB’s expansion of green and sustainable related projects.

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.

The Bank is owned by the Central Bank of Egypt and the Kuwait Investment Authority (49.37% each).

AAIB was established by a special law in 1964 which has since evolved into a fully-fledged regional banking institution.  It is the third largest private sector bank in Egypt with a solid corporate, retail, and SME franchise. The Bank serves its customers through more than 650 thousand clients and a network of 99 branches, 507 ATMs and e-banking services, with presence in United Arab Emirates and one branch in Lebanon.


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.

Arab African International Bank Egypt
Marwa El Bakary
Head of Financial Institutions
+201227376461
mbakary@aaib.com
5 Midan El Saray El Koubra - Garden City - Cairo - Egypt
https://aaib.com/

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/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

How it works

How it works