37771 - Bayport

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Summary of Investment Information

Project Number

37771

Company Name

BAYPORT MANAGEMENT LTD

Date SPI Disclosed

Nov 29, 2016

Country

World Region

Region

Global

Projected Board Date

Jan 2, 2017

Environmental Category

FI-3 - No Impact

Status

Pending Signing

Last Updated Date

Jul 12, 2017

Department

Global Industry, Financial Markets

Industry

Financial Markets

Previous Events

Approved : Apr 26, 2017

Sector

other

Project Description

An investment package of up to $30 million, comprised of local currency direct loans or participation in bond issuances by: Bayport Tanzania (US$10 million equivalent) and Bayport Zambia (US$10 million equivalent); a potential $10 million for Bayport Colombia or Bayport Mexico in the next 6-12 months. In addition to that, IFC will provide a Risk Management Line of up to US$1 million, to allow Bayport Management Limited, Bayport Zambia, or Bayport Tanzania swap part of its US$ denominated borrowings into local currencies.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management	1.0
Guarantee
Loan
Equity

Development Impact

i) Access to finance for education, housing, healthcare and SMEs: increasing the access to credit to low income borrowers primarily for education, housing and home improvements, small enterprise development, and healthcare expenses in Sub-Saharan Africa and Latin America;
ii) Access to finance in rural areas: project will aid access to financial services in underserved areas of African and Latin American; and
iii) Job creation: The Project will further job creation through the growth of the Companies the loans are being provided to as well as further stimulating productive spend amongst the consumer constituency.

i) Strategic Partnership: IFC''s investment will signal IFC''s confidence in a well-managed company and provides the capital that Bayport requires to fund growth in its existing markets.
(ii) Local Currency Funding: IFC will be providing loans in local currency. This is significant to Bayport as its business is focused on the domestic market and the earnings are in local currency. A local currency loan may therefore reduce the risk of currency volatility and will help protect the Company in the event of foreign exchange rate depreciation.
(iii) Digital Finance, Microfinance, banking experience and extensive network in Africa and LAC: IFC is able to provide support to Bayport in its efforts to mobilize deposits, particularly through a digital platform based on its experience in other similar markets.
(iv) Demonstrating Responsible Finance: Bayport''s subsidiary in Botswana is currently SMART certified. IFC will offer support to Bayport in its efforts to achieve SMART Certification for its subsidiaries. IFC''s continued support, including potential advisory assistance for responsible digital finance will enable Bayport to further its ambitions in broadening access to financial services.

E&S Category Rationale / Risks and Mitigation

The project is categorized as FI-3 according to IFC’s Environmental and Social Review Procedures. Bayport provides consumer finance only (loans, savings, insurance and transactional services) to salaried employees in unbanked rural areas of Africa and Latin America. As such, the project is deemed as having minimal environmental and social risks and impacts. Bayport will be required to comply with the requirements of PS2 on Labor and Working Conditions and to implement life and fire safety procedures in line with the IFC Performance Standards.

Contacts

For Inquiries About the Project, Contact

Mr. Stuart Stone and Mr. Grant Kurland
2nd Flood, TC Watermeyer Building
Bayport House, 23A
10th Avenue
Rivonia
2128, South Africa
Tel: +27 (0)11 236 7300
Fax: +27 (0)11 234 9285
Email: mailto:bayportmanagement@bayportfinance.com

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CAO receives and addresses complaints in accordance with the CAO Policy, which can be accessed at: https://www.cao-ombudsman.org/policies-guidelines.

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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