FINADEV MICROFINANCE BANK

completed

Summary Of Project Information (SPI)Project NameBenin – FinadevRegionSub-Saharan AfricaSectorProject No010071Projected Board DateApril 25, 2000Company NameFinadevTechnical Partner and/or Major Shareholders The main sponsor, Financial Bank, is a small but well managed private commercial bank in Benin. It is further supported by Horus Finance, a French consultancy firm experienced in microfinance. Finadev''s proposed shareholding is the following: Financial Bank and its holding company Financial Holdings (40%), Horus Banque et Finance (10%), IFC (20%), other institutional investors (30%). Project Cost Including proposed IFC investment IFC would invest up to CFAF 160 million (about US$250,000 equivalent) in capital and provide a local currency guarantee facility for up to CFAF 1 billion (about US$1.6 million equivalent).Location of project and Description of site The project would be located in Cotonou.Description of Company and Purpose of ProjectFinadev would be the first commercial microfinance venture in Francophone West Africa. It would target three distinct markets: First, it would provide credit lines to smaller microfinance institutions in Benin. Second, it would provide credit lines primarily for housing finance to employees who are organized in unions or associations. And third, it would provide a group-lending product to microentrepreneurs. The project would be expected to contribute to close the gap between commercial banks and microfinance institutions by developing microfinance as a viable and attractive commercial activity for banks. Finadev would serve the credit demand of people who have no access to the formal financial sector and thereby improve their and their families'' living conditions. Environmental Category and Issues This is an FI Type 1 microfinance project. Finadev will be required to ensure that its operations are consistent with host country requirements and IFC’s Microfinance Exclusion List. IFC will assess Finadev’s capability to carry out environmental reviews.Date SPI sent to InfoShop March 14, 2000     “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