BOA Madagascar (BTM Privatization)

completed

Summary Of Project Information (SPI)Project NameMadagascar - Bank of Africa MadagascarRegionSub-Saharan AfricaSectorProject No009786Projected Board DateNovember 1, 1999Company NameBank of Africa Madagascar (BOA-M)Technical Partner and/or Major Shareholders African Financial Holdings (AFH) is the government of Madagascar''s preferred bidder to become a majority shareholder and technical partner of BOA-M. AFH is the holding company for the Bank of Africa network in West Africa, a successful banking group providing a full range of retail and corporate banking and leasing services. Other shareholders include the government of Madagascar (15%), the Dutch development Agency FMO, and local private shareholders. Project Cost Including proposed IFC investment Project Cost: up to US$ 8.7 million IFC Investment: up to US$ 2.2 million (a US$1.7 million equity investment and a US$0.5 million subordinated convertible loan). Location of project and Description of site Bank of Africa Madagascar will be headquartered in Antananarivo, Madagascar.Description of Company and Purpose of Project The project involves the privatization of the Bankin''Ny Tantsaha Mpamokatra (BTM), one of the largest financial institutions in Madagascar. The privatization of the last state-owned commercial bank marks a pivotal step in the country''s market reform strategy, and for the first time in decades, the country will have a nation-wide banking system run on purely commercial principles. Environmental Category and IssuesThis is a Financial Intermediary (FI) Type 1 project according to IFC''s environmental and social review procedure. For relevant operations, BOA-M will be required to implement an environmental management system requiring that investments and client activities under relevant operations comply with the environmental, health and safety requirements of Madagascar. IFC will assess BOA-M’s capability to carry out environmental reviews and will work with BOA-M to develop the capacity to meet these requirements, providing training as deemed necessary BOA-M will be required to provide an annual environmental performance report to IFC.     Date SPI sent to InfoShop September 29, 1999     “This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”For Additional Information contact: Corporate Relations Unit -telephone: (202) 473-7711facsimile: (202) 974-4384