Proparco Co-Investment Agency Line

completed

Summary Of Project Information (SPI)Project NameAfrica Regional: PROPARCO Co-Investment Agency Line     RegionSub-Saharan AfricaSectorProject No008938Projected Board DateJuly 14, 1998Company NamePROPARCOTechnical Partner and/or Major Shareholders Société de Promotion et de Participation pour la Promotion Economique (PROPARCO). PROPARCO is the private sector arm of Agence Française de Développement (AFD), the French Government’s Development Agency.Project Cost Including proposed IFC investment IFC to provide a US$20 million equivalent co-investment agency credit line to PROPARCO. As PROPARCO would invest pari passu with IFC, the total project cost would be US$40 million equivalent. Location of project and Description of site The line would be used in selected Sub-Saharan African countries where IFC has had so far limited presence. PROPARCO would manage the line from its headquarters in Paris and from its field offices in the selected Sub-Saharan countries.Description of Company and Purpose of Project The line would be used to provide senior and venture loans, pari passu with PROPARCO, to small and medium enterprises (SMEs) in Sub-Saharan African countries where IFC has had so far limited presence. By relying on AFD/PROPARCO group’s extensive network in Sub-Saharan Africa, the project would enable IFC to extend its reach and complement its existing AEF and SEF programs. The proceeds of the line would not be tied to any nationality requirements when it comes to the eligibility of companies or goods to be financed. IFC’s role would be mostly in the provision of long-term resources to a category of enterprises for which other sources of long-term financing are very limited. The project will support the growth of the export oriented SME sector, which is central to the economy and the private sector of Sub-Saharan countries. It will also contribute to institution building of African SMEs through the management support and the assistance in structuring the projects that the experienced AFD/PROPARCO field staff will provide to the African entrepreneurs. Environmental Category and Issues This is a category FI project according to IFC’s environmental review procedure. PROPARCO has committed to establishing an environmental management system that will ensure that investments are consistent with applicable host country environmental laws and regulations as well as applicable World Bank environmental, health and safety guidelines and policies; designating appropriate individuals who will have responsibility for environment; attending IFC’s environmental management workshops; submitting an environmental management plan; ensuring that all projects are cleared by IFC’s Environment Division; and submitting an annual environmental performance report. Two PROPARCO staff attended IFC’s Workshop on Competitive Environmental Advantage held in Paris the week of April 20, 1998. PROPARCO proposes to hire an additional person to have responsibility for environmental reviews. In addition, IFC will conduct environmental management training for PROPARCO field staff in September, 1998.     Date SPI sent to InfoShop June 9, 1998“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