BANQUE INTERNATIONALE ARABE DE TUNISIE (BIAT)/GDR ISSUE

completed

Summary of Project Information (SPI)Project NameTunisia:  Banque Internationale Arabe de TunisieRegionCentral Asia, Middle East and North AfricaSectorFinancial ServicesProject No.008544Projected Board DateJanuary 30, 1998Company NameBanque Internationale Arabe de TunisieForeign and Local Shareholders The Foreign Shareholders of the Company are: Gruppo Bancario San Paolo di Torino (8.4%), Wafabank (Morocco) (4.3%), Middle-Eastern Financial Insititutions (7.9%), European Financial Institutions (4.3%).  Local institutional shareholders are Tunisian Institutions (42.4%), and Tunisian Individuals (32.7%).Project Cost including proposed IFC investment Underwriting commitment by IFC for up to 20% of a GDR offering of up to US$60 million, including an equity investment of up to US$3 million in Banque Internationale Arabe de Tunisie. Location of project and Description of site Tunis, TunisiaDescription of Company and Purpose of ProjectIFC has been requested to underwrite the first international equity offering out of Tunisia.  The transaction would be for the account of Banque Internationale Arabe de Tunisie (BIAT) for up to US$60 million in the form of a Global Depository Receipt (GDR).  Both the Government of Tunisia (GOT) and BIAT want IFC to be actively involved in this equity issue because its success is key for Tunisia’s private sector corporations wishing to tap international capital markters.  To date, only the Tunisian Government has been able to access the international markets through bond issues.  IFC expects to underwrite up to 20% of the issue and place it with long-term institutional investors.  IFC would also invest up to US$5 million for its own account.  The issue will be joint lead-managed by IFC and Merrill Lynch.As of June 30, 1997, BIAT has a market capitalization of approximately US$211 million and was the third largest commercial bank, but the largest private sector bank in Tunisia.  As of December 31, 1996, BIAT reported total assets of US$1.6 billion and a customer deposit base of US$1.1 billion.Environmental Category and Issues Financial Intermediary (FI).Date SPI sent to PIC March 9, 1998For additional information contact:   Corporate Relations Unit –Telephone:  (202) 473-7711Facsimile:  (202) 974-4384