33850 - Millenium BIM

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Summary of Investment Information

Project Number

33850

Company Name

BANCO INTERNACIONAL DE MOCAMBIQUE, S.A.

Date SPI Disclosed

Mar 31, 2015

Country

Mozambique

Region

Africa

Projected Board Date

May 1, 2015

Environmental Category

FI-2 - Limited

Status

Pending Signing

Last Updated Date

Nov 30, 2016

Department

Regional Industry - FIG Africa

Industry

Financial Markets

Previous Events

Approved : Jun 10, 2015

Sector

Commercial Banking - General

Project Description

The proposed project will assist in increasing access to financial services to small and medium-sized enterprises, including very small enterprises and women-owned businesses (“SMEs”) in the Republic of Mozambique (“Mozambique”), an IDA country. This will be achieved through an investment package entailing a senior loan aimed at supporting the expansion of BIM - Banco Internacional de Moçambique, S.A.’s (“Millennium BIM” or the “Bank”) SME banking operations. Millennium BIM is a universal bank which provides financial services to micro, SME, corporate, individuals, and low income retail clients in Mozambique.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	30.0
Equity

IFC's loan to the financial institution described in this SII is targeted for on-lending to the following sector(s):

Product Type	Use of Proceeds
Straight Senior Loan	Loans to SME Borrowers
Straight Senior Loan	Loans to SME Borrowers

IFC's Definitions of Targeted Sectors can be found here.

Development Impact

The project is expected to make a contribution to the economic development of, and financial sector in Mozambique. The expected development impact is summarized below:

1) Increased Access to Finance: The project will increase access to finance for SMEs and other under-served segments;
2) Assist in Inclusive Economic Development: By supporting the Government of Mozambique''s development strategy to reduce poverty through more inclusive and broad-based economic growth;
3) Job creation: The project will positively impact job creation as it will provide financing to SMEs, which play a key role in economic development and employment in Mozambique, and
4) Deepening the Financial Sector: By supporting a systemic bank in Mozambique to increase access to finance and banking services to under-served segments.

1) Longer Term Funding: IFC will support the Bank with an increase in its medium-term funding, which will lead to an increase in its on-lending to key sub-segments of SMEs, which are underserved in the local market.
2) Mobilization of Blended Finance: IFC will mobilize funding through the Global SME Finance Facility from the Department for International Development (DFID) to support the Bank''s expansion into the high-impact sub-sectors of SMEs.
3) Leverage Global Expertise: IFC will add value through its global knowledge of SME finance and best practice sharing, particularly as the Bank expands its SME portfolio.

E&S Category Rationale / Risks and Mitigation

The project has been categorized as FI-2 according to IFC’s Environmental and Social Review Procedures. Millennium BIM provides, among others, retail and commercial banking services to clients in Mozambique. The sectors financed include trade, manufacturing, construction and transportation. The Environmental and Social (“E&S”) risks and impacts associated with SME activities are considered mostly limited and can be readily addressed through mitigation measures. The applicable performance requirements are the IFC Exclusion List, the applicable national social and environmental laws in Mozambique.

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This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. It also includes findings and recommendations related to environmental and social considerations regarding this potential investment. The purpose of the SII is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this SII is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein. It is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following SII is disclosed in accordance with IFC's Access to Information Policy (AIP) that went into effect on January 1, 2012.

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Task Title & Description	Anticipated Completion Date
Nominate officers	03/31/2015
Establish SEMS	04/30/2015
Staff Training	10/31/2015
Compliance with Perfomance Standard 2	04/30/2015

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