Project Amal

active

The proposed investment package of up to US$90 million to the Bank of Palestine (BoP or the Bank) entails (i) an IFC equity investment of up to 5% shareholding (up to US$25 million); and (ii) a senior unsecured loan package of up to US$65 million for on-lending to retail and SMEs (the Project). The loan package includes an (a) IFC A Loan of up to US$25 million, (b) an up to US$6.5 million concessional subordinated loan from IFC acting in its capacity as the implementing entity of the Global Small & Medium Enterprise Facility (“GSMEF”), and (c) an up to US$3.5 million concessional subordinated loan from IFC acting in its capacity as the implementing entity of the MENA Private Sector Development Facility (“MENA PSD”), to which IFC and IFC in its capacity as the implementing entity of the MENA PSD [may] agree arrangements on transferring some shares from IFC to IFC in its capacity as implementing entity of the MENA PSD of value up to US$3.5 million following the repayment of the loan package. IFC also expects mobilize up to US$30 million through parallel loans. The proposed Project is IFC’s initiative to mitigate the severe impacts of the ongoing conflict in the Middle East, through a long-term strategic IFC partner, and supporting the banking sector in the West Bank and Gaza (WB&G) in an extraordinarily challenging time. The investment aims to stabilize the financial sector during distress, signalling confidence to draw in other like-minded investors. Equally importantly, the Project aims to provide the Bank the opportunity to remain in a liquid and sufficiently capitalized financial position to support the livelihood of the WB&G economy and play a leading role in the post-conflict reconstruction efforts. The Project is expected to be supported by the GSMEF and MENA PSD.