XM-DAC-903-SII-34639
International Finance Corporation
SHL Senior Loan
The Project entails providing a long term loan facility to Saudi Home Loan Company (SHL or the Company) to support SHL in growing its housing finance portfolio, and in turn support the housing finance sector in the Kingdom of Saudi Arabia (KSA). SHL is a closed Joint Stock Company established in 2007 with an authorized capital of US$533.3 million (SAR2 billion). The Company is a specialized Shariah-compliant housing finance company headquartered and operating solely in KSA with its main operations including financing the purchase of houses and residential land and apartments within KSA.
With the proposed financing, the company is expected to increase its mortgage portfolio by approximately 20%, which would represent approximately 1,000 new loans or units financed. Furthermore, considering the long-term nature of the facility, it is expected to enhance the Company''s ability to extend mortgage finance of longer tenors.
Saudi Home Loans Company
Mr. Salman Qureshi Chief Financial Officer Saudi Home Loans Company Address: Saudi Home Loans Company Bldg.2495, Road 2832 Riyadh 11417 Kingdom of Saudi Arabia Telephone: + 9661-874 7900 Ext : 6619 Email: mailto:s.qureshi@saudihomeloans.com
International Finance Corporation
+12024733800
ccspg@ifc.org
www.ifc.org
2121 Pennsylvania Avenue, NW Washington DC 20433
Saudi Arabia
SHL is headquartered in Riyadh, KSA with several branches and provides housing finance across the country.
Location description
A description that qualifies the activity taking place at the location.
25.0000000000 45.0000000000
O-EA - Primary Mortgage Institutions
Total: $50.00 million
50000000.00
50000000.00
Saudi Home Loans Company
Summary of Investment Information
Summary of Investment Information - Anticipated Impact Measurement & Monitoring (AIMM) Assessment and Main Environmental & Social Risks and Impacts of the Project
See Environmental and Social Management System (ESMS) summary tab.
Please refer to the Environmental & Social Categorization Rationale tab in the project disclosure document, as well as the Mitigation Measures/Environmental and Social Action Plan tab when applicable. https://disclosures.ifc.org/project-detail/SII/34639/shl-senior-loan
XM-DAC-903-SPI-9379
International Finance Corporation
Saudi Leasing Company
Summary Of Project Information (SPI) Project Name: Saudi Arabia -Saudi Leasing Co. Region:Central Asia Middle East and North Africa Sector: Project No:009379 Projected Board Date:June 17, 1999 Company Name: ORIX Leasing-SA Technical Partner and/or Major Shareholders Technical Partner: ORIX Corporation Major Shareholder: -Saudi Investment Bank (SAIB) -A group of eight Saudi businessmen Project Cost Including proposed IFC investment Total project cost US$31 Million IFC Investment: equity - up to US$2.4 Million Location of project and Description of site Riyadh, Saudi Arabia Description of Company and Purpose of Project The project is to establish the first leasing company in Saudi Arabia, whose main goal would be to provide term finance for Small and Medium Enterprises (SMEs). The company''s operations, supported by the market knowledge of the local sponsors and the technical expertise of the foreign partner, are expected to have a high developmental impact for the promotion of "non-bank" finance alternatives for SMEs. IFC would invest in the equity of the Company. Through this project, IFC would support the Government''s strategy by promoting a specialized financial intermediary focused on SMEs. Environmental Category and Issues This is a Financial Intermediary (FI) type 1 project according to IFC''s environmental review procedure. For relevant operations, the Company will be required to implement an environmental management system consistent with host country requirements. IFC will assess the Company''s capability to carry out environmental reviews. In addition, the Company will be required to submit an annual environmental performance report. Date SPI sent to InfoShop: May 11th 1999 This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporations Board of Directors. It is provided for the purpose of enhancing the transparency of IFCs activities and should not be construed as presuming the outcome of IFC Board consideration. For Additional Information contact: Corporate Relations Unit - telephone: (202) 473-7711 facsimile: (202) 974-4384
SAUDI ORIX LEASING COMPANY
International Finance Corporation
+12024733800
ccspg@ifc.org
www.ifc.org
2121 Pennsylvania Avenue, NW Washington DC 20433
Saudi Arabia
Location description
A description that qualifies the activity taking place at the location.
25.0000000000 45.0000000000
LB - Leasing Services
Total: $1.60 million
1600000.00
1600000.00
SAUDI ORIX LEASING COMPANY
Summary of Project Information
See Environmental and Social Management System (ESMS) summary tab.
Please refer to the Environmental & Social Categorization Rationale tab in the project disclosure document, as well as the Mitigation Measures/Environmental and Social Action Plan tab when applicable. https://disclosures.ifc.org/project-detail/SPI/9379/saudi-leasing-company
XM-DAC-903-SPI-11492
International Finance Corporation
Saudi Leasing Company
The project consists of structuring and partially guaranteeing the first corporate term note in Saudi Arabia. The note will be issued by SOLC which will use the term borrowings to finance the growth of its leasing portfolio. This will be the first bond ever issued in Saudi Arabia, and the first paper of its kind for a non-bank financial institution. The project will have a strong demonstration effect for the development of capital markets and bond issues in the country. The project is strongly supported by the Saudi Arabian Monetary Agency (SAMA) the country''s Central Bank and IFC is working closely with SAMA to support SAMA''s objective of promoting local bond issues. IFCs guarantee will assist the company in obtaining term funding, otherwise not available in the market and will emphasize IFCs role as a neutral partner assisting in the structuring this multi-party risk exposure.
SAUDI ORIX LEASING COMPANY
Shaheen Amin, General Manager P.O. Box 22890 Riyadh 11418 Saudi Arabia Phone: 966-1-474-9224 Fax: 966-1-474-9214
International Finance Corporation
+12024733800
ccspg@ifc.org
www.ifc.org
2121 Pennsylvania Avenue, NW Washington DC 20433
Saudi Arabia
Saudi Arabia.
Location description
A description that qualifies the activity taking place at the location.
25.0000000000 45.0000000000
LB - Leasing Services
Total: $6.67 million
6670000.00
6670000.00
SAUDI ORIX LEASING COMPANY
Summary of Project Information
Please refer to the Environmental & Social Categorization Rationale tab in the project disclosure document, as well as the Mitigation Measures/Environmental and Social Action Plan tab when applicable. https://disclosures.ifc.org/project-detail/SPI/11492/saudi-leasing-company
XM-DAC-903-SPI-23211
International Finance Corporation
Saudi British Bank
The proposed project consists of a long term local currency loan of up to $50 million to Saudi British Bank (the SABB or the Bank), based in Riyadh Saudi Arabia. SABB is one of Saudi Arabias leading commercial banks, offering a wide range of financial services, including corporate, personal and investment banking. The proposed project is aimed at providing much needed long term financing to support the growth of SABBs nascent mortgage lending program. SABB started its mortgage lending program three years ago and is now the leading provider of mortgage loans in Saudi Arabia.
THE SAUDI BRITISH BANK SJSC
Khawaja Aftab Ahmed
Senior Investment Officer
International Finance Corporation
Middle East and North Africa Department
Email: kaahmed@ifc.org
International Finance Corporation
+12024733800
ccspg@ifc.org
www.ifc.org
2121 Pennsylvania Avenue, NW Washington DC 20433
Saudi Arabia
SABBs head office is in Riyadh, Kingdom of Saudi Arabia. The Bank currently has 77 branches including a branch in London which provides a full range of banking services.
Location description
A description that qualifies the activity taking place at the location.
25.0000000000 45.0000000000
AB - Commercial Banking - Housing Finance
Total: $50.00 million
50000000.00
50000000.00
THE SAUDI BRITISH BANK SJSC
Summary of Project Information
Please refer to the Environmental & Social Categorization Rationale tab in the project disclosure document, as well as the Mitigation Measures/Environmental and Social Action Plan tab when applicable. https://disclosures.ifc.org/project-detail/SPI/23211/saudi-british-bank
XM-DAC-903-SPI-23917
International Finance Corporation
Al-Ahli Takaful Company
The project involves the establishment of a new Shariah compliant life insurance (Takaful) company to be named Al-Ahli Life Takaful Company (Al Ahli Takaful or the company) in Saudi Arabia with an IFC equity investment of up to $4.67 million (up to 17.5% shareholding). The company will be sponsored by National Commercial Bank (NCB), the largest commercial bank in Saudi Arabia as well as the Arab world. The technical partner will be the FWU AG Group Germany, a financial services group that is primarily active in the unit linked life insurance and asset management and has been in operation since 1989. FWU has developed an extensive knowledge base and know how of Takaful Industry and has been working with NCB on this project over the last year. NCB being the largest player in the mutual funds market with a customer base of over one million customers, will manage the investment strategy, marketing, sales and distribution, whereas FWU will assist in product development, provide actuarial and IT support.
ALAHLI TAKAFUL COMPANY
Mr. Khalid G. Allagany, Head of Insurance Dept. E-mail: k.allagany@alahli.com Phone: +966 2 643 0555 ext. 3700
International Finance Corporation
+12024733800
ccspg@ifc.org
www.ifc.org
2121 Pennsylvania Avenue, NW Washington DC 20433
Saudi Arabia
Jeddah, Saudi Arabia.
Location description
A description that qualifies the activity taking place at the location.
25.0000000000 45.0000000000
JA - Life Insurance
Total: $4.67 million
4670000.00
4670000.00
ALAHLI TAKAFUL COMPANY
Summary of Project Information
Please refer to the Environmental & Social Categorization Rationale tab in the project disclosure document, as well as the Mitigation Measures/Environmental and Social Action Plan tab when applicable. https://disclosures.ifc.org/project-detail/SPI/23917/alahli-takaful-company
XM-DAC-903-SPI-24112
International Finance Corporation
KSA MBS Project
The proposed project is a $30 million IFC investment in Kingdom Installment Company (KIC or the company) to support the companys future housing finance program. IFCs investment would be in the form of a credit enhancement of the mezzanine tranche of the mortgage backed securities (MBS) to be issued by KIC. The project will allow the company to grow its housing finance operations and establish a market based housing finance program. IFC will also consider taking a small equity/quasi equity position in KIC. The rationale for the equity investment would to help KIC develop its business further along industry best practice lines and to eventually become a housing finance bank once the law establishing housing finance banks in Saudi Arabia has been enacted. Saudi Arabia currently does not have specialized body for regulating housing finance lenders and regulatory oversight is limited. Through its investment, IFC will help the company in its preparation and transition to becoming a non-bank housing finance institution IFCs equity investment will be considered following due diligence and only if there is a robust role for IFC, and a potential for an upside can be established as well as appropriate exit mechanisms can be identified or negotiated with the sponsors. IFC will play a catalytic role in introducing the company to a potential technical partner (HDFC etc) in helping them convert into a housing finance bank. Under the proposed securitization, KIC will issue MBS backed by a pool of Shariah-compliant housing finance contracts originated in the Kingdom of Saudi Arabia (KSA). The issue will represent the first Shariah-compliant MBS issued in Gulf Cooperation Council (GCC) countries. The MBS would allow the KIC to diversify its funding sources by tapping the regional capital markets and enhance its liquidity needed to originate additional housing finance contracts especially as the company launches a new growth phase of its housing finance operations. The project will also introduce a high quality new shariah compliant asset class to the regional markets. KIC has engaged Unicorn Investment Bank (UIB) out of Bahrain as arranger/placement agent, Lovells (London), who has an extended legal practice in Islamic financing and securitization, as the lead counsel and White and Case (Saudi Arabia) as local counsel for the MBS. Also, KIC has mandated Ernst and Young (Saudi Arabia) to provide advice on the tax and other accounting implications of the transactions. Finally Bearing Point (US) has been contracted to complete the cash-flow model for the MBS. The transaction is expected to be rated by Capital Intelligence Limited out of Cyprus. .
KINGDOM INSTALLMENT COMPANY
Mr. Tahir M. Naseem Director, Structured Finance Manama Kingdom of Bahrain Telephone Number +973 175 66031 Fax Number +973 175 66001
International Finance Corporation
+12024733800
ccspg@ifc.org
www.ifc.org
2121 Pennsylvania Avenue, NW Washington DC 20433
Saudi Arabia
Riyadh, Kingdom of Saudi Arabia.
Location description
A description that qualifies the activity taking place at the location.
25.0000000000 45.0000000000
EB - Secondary Mortgage Institutions
Total: $30.00 million
30000000.00
30000000.00
KINGDOM INSTALLMENT COMPANY
Summary of Project Information
Please refer to the Environmental & Social Categorization Rationale tab in the project disclosure document, as well as the Mitigation Measures/Environmental and Social Action Plan tab when applicable. https://disclosures.ifc.org/project-detail/SPI/24112/ksa-mbs-project
XM-DAC-903-SPI-25384
International Finance Corporation
KIC NewCo Investment
The proposed transaction consists of a green field investment in a new specialized mortgage finance institution (the NewCo) that is proposed to be established in the Kingdom of Saudi Arabia (KSA). IFC is planning to invest a total of c.a. $27 million of minority equity investment in the NewCo. The NewCo is planned to offer various housing finance products, targeting middle-income customer segment in Saudi Arabia, and grow to the nations largest specialized mortgage finance institution over years.
The project is expected to have a high impact contribution on residential infrastructure development and financial sector development in KSA: Increased Access to Housing Finance: The NewCo will provide increased affordability of housing finance for middle-income Saudi households, currently underserved by developers, who tend to focus on the wealthiest segments of the population. Access to housing is a major problem in KSA, with demand consistently outstripping supply and the housing deficit increasing each year. By 2020, there will be an estimated demand for 7 million houses, an increase of 3.9 million units from current levels. The major constraint on the development of the real estate sector is the lack of sufficient availability in housing finance. Establishment of Replicable Business Model in the Region: The business model of the NewCo will send a powerful signal on the best practice of the corporate governance and the operations to current and potential market participants. KIC/NewCo is completely on board with these views, as shown by its negotiations with HDFC for capacity-building technical assistance. Capital Markets Development: The IFC Loan would provide the NewCo with access to long-term funds to acquire and lease a steady stream of properties initially financed by the IFC Loan. The revolving nature of the IFC Loan provides support for the NewCos potential securitization activity, and further accelerates the development of mortgage finance/MBS securitization market in the country. Introduction of Sustainability Standards in Housing Construction: The acceptance and implementation of sustainability standards by DAAR and other developers whose residential products will be the source of origination for the NewCo will send an important and industry wide signal to the real estate sector in Saudi Arabia. If this initiative is successful, it could lead to broader acceptance both voluntarily by other competing builders and by regulatory authorities through inclusion of such standards in building codes. The experience gained in this connection could be used to introduce similar initiatives in other emerging markets.
Saudi Home Loans Company
Simon Stockley, Chief Operations Officer Kingdom Installment Company P.O. Box 105633 Riyadh 11656, Kingdom of Saudi Arabia Telephone: +9661 206 1100 ext. 1177 Fax: +9661 206 1100 ext. 1178
International Finance Corporation
+12024733800
ccspg@ifc.org
www.ifc.org
2121 Pennsylvania Avenue, NW Washington DC 20433
Saudi Arabia
The NewCo will be headquartered in Riyadh, and will establish several branches across Kingdom of Saudi Arabia. Investments can be made throughout the country.
Location description
A description that qualifies the activity taking place at the location.
25.0000000000 45.0000000000
EA - Primary Mortgage Institutions
Total: $26.66 million
26660000.00
26660000.00
Saudi Home Loans Company
Summary of Project Information
Please refer to the Environmental & Social Categorization Rationale tab in the project disclosure document, as well as the Mitigation Measures/Environmental and Social Action Plan tab when applicable. https://disclosures.ifc.org/project-detail/SPI/25384/kic-newco-investment
XM-DAC-903-SPI-27981
International Finance Corporation
Riyad Bank Student Loan
Riyad Bank and IFC are planning to establish a risk-sharing student loans facility in Saudi Arabia. The Facility will be used to provide loans to students who have difficulty affording the tuition fees for their tertiary education, thus providing them with up to five years to pay these fees. This will be the first private student loan financing facility in Saudi Arabia. The student loans originated under the Facility will be funded and serviced by Riyad Bank.
The project will have a strong development impact by:
- Improved access and increased affordability for higher education for low income and female students in Saudi Arabia
- Foster ownership of ones education
- Provide universities with more reliable and increased tuition fee collection mechanism
- Create a new assets class in the local financial market
RIYAD BANK
Nadeem Ishaque Khawaja
Vice President
Strategic Planning Department
PO Box 22622
Riyadh 11416
Saudi Arabia
Telephone: 401-303-2153
International Finance Corporation
+12024733800
ccspg@ifc.org
www.ifc.org
2121 Pennsylvania Avenue, NW Washington DC 20433
Saudi Arabia
The facility will be available for students studying at private universities and colleges in Saudi Arabia. Riyad Bank has a branch network that can serve the target student population across the country.
Location description
A description that qualifies the activity taking place at the location.
25.0000000000 45.0000000000
AB - Colleges, Universities, and Professional Schools
Total: $30.00 million
30000000.00
30000000.00
RIYAD BANK
Summary of Project Information
Please refer to the Environmental & Social Categorization Rationale tab in the project disclosure document, as well as the Mitigation Measures/Environmental and Social Action Plan tab when applicable. https://disclosures.ifc.org/project-detail/SPI/27981/riyad-bank-student-loan
XM-DAC-903-SPI-29822
International Finance Corporation
Saudi Orix SF
Saudi Orix Leasing Company SOLC was established on January 16, 2001 as the first leasing company in The Kingdom of Saudi Arabia and currently commands a leading position in that market.
The company is one of IFCs existing portfolio clients as IFC had extended a loan for USD 17mn, which was disbursed in June 2006 and which matures in August 2013. The current outstanding under said loan is USD 9.9m.
The proposed investment is a Sustainability Finance Line (A Loan) of up to $ 20 million for up to 7 years including a grace period of 24 months. The loan will be used by SOLC for on-lending, in the form of financial leases, to SMEs meeting certain eligibility criteria of IFCs SF program. In addition, there can be an advisory services component to help the Company build the capacity of its marketing and loan origination staff to increase utilization of the line.
The project will help SOLC, a leading leasing company in Saudi Arabia, develop an "energy efficiency" portfolio. The size of the portfolio and the number of SMEs using this financing will be an indication of the success of the program and will have knock-on effects (though difficult to quantify) on raising the visibility of that form of financing in the Kingdom. By helping the Company introduce this innovative product, the project is also boosting the Company's competitive edge which should reflect on its growth and margins. Finally, as this would be the first SF funding provided by IFC in the region, it will likely have demonstration effects for replication in the region both by Orix and others.
SAUDI ORIX LEASING COMPANY
Mr. Shaheen AminGeneral Manager
P.O Box # 22890Riyadh 11418Kingdom of Saudi ArabiaEmail: info@saudiorix.com.sa
Web: http://www.saudiorix.com.saTelephone : +966 1 2997777
Fax : +966 1 2997770
International Finance Corporation
+12024733800
ccspg@ifc.org
www.ifc.org
2121 Pennsylvania Avenue, NW Washington DC 20433
Saudi Arabia
SOLC is headquartered in the city of Riyadh within the Kingdom of Saudi Arabia, with branches within different cities in all 3 regions of the Kingdom of Saudi Arabia, namely the Central Region (Riyadh), Western Region (Jeddah) and Eastern Region (Al Khobar and Jubail). The company provides medium term asset financing to all productive sectors of the economy the Kingdom of Saudi Arabia.
Location description
A description that qualifies the activity taking place at the location.
25.0000000000 45.0000000000
LB - Leasing Services
Total: $20.00 million
20000000.00
20000000.00
SAUDI ORIX LEASING COMPANY
Summary of Project Information
See Environmental and Social Management System (ESMS) summary tab.
Please refer to the Environmental & Social Categorization Rationale tab in the project disclosure document, as well as the Mitigation Measures/Environmental and Social Action Plan tab when applicable. https://disclosures.ifc.org/project-detail/SPI/29822/saudi-orix-sf
XM-DAC-903-SPI-30692
International Finance Corporation
Fawaz Abdul Aziz Al Hokair
Fawaz Abdulaziz Al Hokair & Co. (ALH Retail or the Company), Saudi Arabias leader in the apparel retail franchise sector, is implementing a program to expand its domestic operations, as well as to grow its international presence, which currently spans Egypt, Jordan, Kazakhstan and the UAE. The proposed expansion program comprises the increase in the number of stores operated by the Company from approximately 1,028 to approximately 1,780 over a 3-year period, and includes store openings in new countries of operations, such as Azerbaijan and Georgia.
Consumer Benefits: the expansion of the Companys retail chain in the Central and Eastern Europe, as well as in the Middle East and North Africa regions, will enable ALH Retail to provide for its customers better access to a more diverse selection of high-quality, affordable apparel. This will be especially important for consumers in such countries as Azerbaijan and Georgia where modern apparel retail sector is still nascent. Stronger bargaining positions vis-a-vis suppliers, economies of scale achieved through geographical expansion, as well as improved inventory management are expected to result in cost savings, which eventually can be passed on to the end customer;
Employment Generation: the expansion of the Companys operations will create 1,000 permanent jobs. In addition, ALH Retails large-scale expansion will involve numerous leasehold improvements, which will generate temporary employment;
Life and Fire Safety (LFS) Improvements: As a condition of the IFC investment, ALH Retail will commit to implement an improved LFS Action plan;
Supporting IFC's reach in frontier regions and south-to-south investments: establishing a long term partnership with an important local player in its expansion plans to surrounding developing countries;
FAWAZ ABDULAZIZ ALHOKAIR & CO
Mr. Mohammad Hussein M. Masoud
Chief Financial Officer
Fawaz Abdulaziz AlHokair & Company
PO Box: 359 Riyadh 11411
Kingdom of Saudi Arabia
Tel: +966 1 435 0000 (Ext 262)
Fax: 966 1 435 0000(Ext 148)
Mohammed.Masoud@alhokair.com.sa
International Finance Corporation
+12024733800
ccspg@ifc.org
www.ifc.org
2121 Pennsylvania Avenue, NW Washington DC 20433
Saudi Arabia
ALH Retails new leased stores to be opened as part of the Companys corporate expansion program and to be financed with proceeds of IFCs loans will be located in modern malls with good access to transportation routes and other necessary infrastructure in cities throughout the Kazakhstan, Azerbaijan and Georgia.
Location description
A description that qualifies the activity taking place at the location.
25.0000000000 45.0000000000
BA - Retail (Including Supermarkets, Grocery Stores, etc.)
Total: $75.00 million
75000000.00
75000000.00
FAWAZ ABDULAZIZ ALHOKAIR & CO
Summary of Project Information
See sections Identified Applicable Performance Standards, Stakeholder Engagement, Environmental and Social Action Plan, E&S Categorization Rationale.
Please refer to the Environmental & Social Categorization Rationale tab in the project disclosure document, as well as the Mitigation Measures/Environmental and Social Action Plan tab when applicable. https://disclosures.ifc.org/project-detail/SPI/30692/fawaz-abdul-aziz-al-hokair