BNI-Leasing

completed

The proposed transaction consists of an equity investment of up to Euro 80,000 ($100,000 equivalent) for a 20% stake in BNI-Leasing, a private sector leasing company in Madagascar, which IFC will help establish. The company is being sponsored by BNI-Credit Lyonnais Madagascar, the largest commercial bank in the country in terms of total assets, will be considered a subsidiary of BNI-CLM and is expected to be capitalized at approx. Euro 400,000. It will also be one of only two leasing companies in the country and will cater to both corporate and SMEs operating in the private sector. The project will address the country’s growing demand for long-term equipment financing in the tourism, construction, transportation, textile and fishery sectors. This proposed project would be considered part of IFC’s participation in the IDA-IFC MSME project for Madagascar, which is part of the IDA Integrated Growth Poles project (the IG2P project). Under the IG2P project, BNI-Leasing is expected to have a high developmental impact on the Malagasy economy, especially given IFC’s active role as advisor to the Malagasy government in that it helped to:- establish the regulatory framework for leasing and - draft the Leasing Law.