Alliances is listed on the Casablanca Stock Exchange with a current market capitalization of approx. US$775 million as of December 2013. The Company is the second largest affordable homebuilder in Morocco with sales of US$470 million and net profit of US$128 million in 2012. Established in 1994, Alliances has successfully transitioned from being a developer of high end residential projects and hotels to becoming the second largest affordable housing company in Morocco.

IFC is planning to invest $50 million in straight equity and quasi equity instruments to help the Company implement its future operational plans in affordable housing.

65.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	0.0
Equity	65.0

* These investment figures are indicative

Alliances is present across Morocco including major urban centers such as Casablanca, Marrakech, Rabat, Agadir and Fès as well as frontier and smaller communities.

(i) Increased Housing Supply for Low-Income Households: This Project is expected to alleviate the current housing deficit in Morocco, including major urban centers such as Casablanca, Agadir and Fes as well as frontier and smaller communities and benefit the low to middle income segments with increased supply of quality and affordable entry level housing.

(ii) Community Development: The housing developments built by Allliances will contribute to urban infrastructure development and surrounding community development. In addition, the Project helps support the urbanization efforts of local governments, as the housing projects include partial infrastructure works.

(iii) Job Creation and Financial Security: The Project will create job opportunities both during construction and operation of the housing communities. Increased supply of low-cost housing developed by the Company will make an impact on the lives of the low income purchasers who will improve their personal security and through payment of their mortgage build up equity (often for the first time) in a significant asset.

(iv) Enhanced Local Supply Linkages: The Project will increase demand for construction and building materials in the country. Once the construction is completed, the housing units will stimulate the use of local supplies of goods and services, supporting maintenance, retailing and wholesale operations. Moreover, the low income properties financed by the Project are often the buyers'' first property title and such property rights are considered a key determinant of economic development as they promote the formal economy.

(i) Provide long-term equity capital not available otherwise to finance additional investments in lower-income housing projects.

(ii) Provide global expertise and market perspective for the housing sector, and particularly in the low income housing segment, enabling Alliances to implement its growth plans.

(iii) Provide technical support to Alliances to be in compliance with IFC''s environmental and social Performance Standards.

(iv) Assist Alliances in the development of green buildings concepts and sustainable housing developments.

The key environmental and social issue is Alliances’ capacity to put in place an international standard corporate environmental, social, health and safety management system that will be consistently implemented across its activities such as E&S assessment of prospective projects consistent with IFC Performance Standards 1; fire and life standards in housing design; occupational health and safety for its employees as well as third party workers on Alliances’ construction sites; pollution control measures during construction including access to public services (i.e. municipal sewerage system, water, electricity and solid waste services). As such this is a category B investment according to IFC’s Procedure for Environmental and Social Review because the potential adverse social and environmental impacts of the proposed investment are limited, site-specific and reversible and may be mitigated by adhering to IFC Performance Standards, generally recognized guidelines and design criteria. For more information please see ESRS.

Please refer to the related Environmental and Social Review Summary (ESRS) document for this project.

Please refer to the Environmental and Social Action Plan (ESAP) tab in the related Environmental and Social Review Summary (ESRS) document for this project.