MEIB Recapitalization

completed

Summary Of Project Information (SPI)Project NameJordan - MEIB RecapitalizationRegionCentral Asia, Middle East and North AfricaSectorProject No009627Projected Board DateJanuary 28, 1999Company NameMiddle East Investment BankTechnical Partner and/or Major ShareholdersThe project’s technical partner is the Lebanon-based Société Générale Libano-Européene de Banque (SGLEB), which is jointly owned and managed by Société Générale (50%) and the Sehnaoui Group (50%). As part of the proposed project, SGLEB will make an investment in Middle East Investment Bank (MEIB) and provide management and technical services.MEIB is an existing Jordanian commercial bank. The largest existing shareholder of MEIB is the Mango Family. The shares of MEIB are publicly traded in the Amman Financial Market.   Project Cost Including proposed IFC investment The proposed recapitalization program, with a total project cost of JD10 million (about US$14 million equivalent), would allow the bank to meet the Central Bank of Jordan''s JD20 million minimum capital requirement. IFC’s proposed investment is a subordinated convertible bond of up to US$2.2 million equivalent.Location of project and Description of site MEIB is headquartered in Amman and has 21 branch offices throughout Jordan.Description of Company and Purpose of Project MEIB is the smallest commercial bank in Jordan. The project involves both the recapitalization of MEIB to meet the Central Bank of Jordan''s minimum capital requirements, and the restructuring of MEIB, managed by SGLEB. The IFC investment would be part of this larger recapitalization and restructuring program for MEIB. IFC''s investment would complement the technical assistance program in Jordan, provided by both IFC and the World Bank (through the Economic Reform and Development Loan). IFC’s strategy of promoting efficient financial intermediation in Jordan to support private sector development would be furthered with the investment in MEIB and the upgrading of MEIB''s services to international standards. Also, with MEIB improving its position in the market, the existing shareholders’ value will increase.Environmental Category and Issues This is a Financial Intermediary (FI) Type 1 project according to IFC''s environmental and social review procedure. MEIB will be required to apply environmental review procedures to relevant operations and ensure that subprojects comply with applicable Jordanian environmental, health and safety laws and regulations.Date SPI sent to InfoShop December 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