39595 - CIB Subdebt

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Summary of Investment Information

Project Number

39595

Company Name

COMMERCIAL INTERNATIONAL BANK SAE

Date SPI Disclosed

Nov 28, 2017

Country

Egypt, Arab Republic of

Region

Africa

Projected Board Date

Jun 16, 2017

Environmental Category

FI-1 - Significant

Status

Completed

Last Updated Date

May 8, 2024

Department

Regional Industry - FIG ME & Africa

Industry

Financial Markets

Previous Events

Approved : Jun 16, 2017
Signed : Nov 28, 2017
Invested : Dec 27, 2017

Sector

Commercial Banking - General

Project Description

The project consists of a subordinated loan to the Commercial International Bank S.A.E Egypt (“CIB” or the “Bank”). This Tier 2 capital instrument is intended to add diversity to the Bank’s capital base and long-term growth prospects.

Established in 1975 as a joint venture between Chase Manhattan Bank and the National Bank of Egypt, CIB is currently the leading private bank in the market, having a well-established franchise especially in the corporate segment, and it is also Egypt’s largest private bank by assets. The Bank offers The Bank offers comprehensive, wide-ranging financial products and services through a network of 194 branches and 6,474 employees, operating in all segments of Egypt’s banking sector: corporate, commercial, business banking, and retail wealth management, all of which are offered to customers through client-centric teams.

Associated Advisory Engagement

None

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	150.0
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
Quasi-Equity	Loans to SME Borrowers

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

Development Impact

1. Capitalization Support: The Project will support a Tier II capital instrument, which will diversify and strengthen CIB's capital base and thus send a strong signal of IFC's commitment to the market.
2. Long-term FCY Funding: IFC will provide CIB with a long-term FCY funding for its customers, boosting their capacity to generate FCY earnings.
3. Support the implementation of a more comprehensive Environmental & Social Management System ("ESMS"): With CIB's commitment to Environmental & Social ("E&S") issues, IFC will support the Bank to enhance its existing ESMS to enable a more efficient management of E&S risks.
4. Strengthening IFC's relationship with the market's leading bank: The Project will strengthen the IFC's long- standing relationship with CIB, gearing the Bank's growth strategy to help the bank meet its customers' funding needs.

Indicator	Metrics	Comments	Calendar Year 2022	Calendar Year 2023	Calendar Year 2024
CORE - E and S Management Systems (Y/N)	Compliance/Enhancement		Not Available	Not Available	Not Available

E&S Category Rationale / Risks and Mitigation

The project is a Tier II subordinated loan to CIB with relatively high exposure to long-term corporate loans and substantial exposure to business activities with potential adverse environmental and social risks, including petroleum, petrochemicals, power generation and transmission, gas, and mining. The project is classified as Category FI-1 project, according to the IFC's Sustainability Policy. For this project, CIB will be required to screen loans against the IFC Exclusion List, host country Environmental and Social laws and regulations and the IFC Performance Standards.

CIB has an E&S policy and procedures approved by the board in February 2016 that is covering the Equator Principles ('EP') Requirements, including screening projects that meet the EP criteria against the IFC performance standards. CIB is currently undertaking further developments to the existing policy, procedures and ESMS adopting the IFC Performance Standards and E&S requirements planned to be finalized in February 2018. CIB has an assigned E&S team which includes an officially nominated E&S officer who leads the team. A training plan has been developed for training the relevant Bank staff on E&S risk management as a continuation of the on-going E&S training plans by the Bank. CIB will be hiring an external consultant for due diligence of E&S high risk clients subject to a case-by-case scenario to ensure exploring as many diverse sectors as possible. The main E&S issues of this investment relate to CIB's capacity to manage environmental and social risks associated with its investments in line with the applicable requirements. The Bank's HR practices in general are in conformity with IFC's Performance Standards 2 on Labor and Working conditions.

Contacts

For Inquiries About the Project, Contact

Commercial International Bank
Mr. Hossam Rageh
Head of Financial Institutions Group
+202-3747-2021
hossam.rageh@cibeg.com
21/23 Charles De Gaulle St., Giza - P.O. Box 2430 Cairo
www.cibeg.com

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IFC supports its clients in addressing environmental and social issues arising from their business activities by requiring its real sector clients to set up and administer appropriate grievance mechanisms and/or procedures to address complaints from Affected Communities in relation to environmental and social issues arising from IFC's clients' business activities. Since 2012, IFC's Financial Intermediary clients applying the Performance Standards are required to develop External Communications Mechanisms to receive and review inquiries or complaints from any interested party regarding the E&S risks and impacts of their operations.

For IFC projects that are active or under consideration, individual(s), or their authorized representative(s), who allege they have been or will be adversely affected by E&S risks or impacts arising from IFC's clients' business activities, may submit a complaint to IFC directly for consideration. When receiving an E&S complaint, IFC engages with complainants and works with its clients to find solutions to E&S concerns as quickly and efficiently as possible.

Complaints can be submitted to IFC online at www.ifc.org/escomplaints or by email to EScomplaints@ifc.org.

IFC complaint response is separate from and complementary to IFC’s clients’ project level grievance mechanisms and IFC’s Independent Accountability Mechanism (CAO). Lodging a complaint directly with IFC does not, at any time, restrict access to CAO.

Affected communities have unrestricted access to the Compliance Advisor Ombudsman (CAO), the independent accountability mechanism for IFC and MIGA. CAO facilitates the resolution of complaints related to IFC and MIGA projects and sub-projects, undertakes reviews of IFC’s and MIGA’s environmental and social compliance, fosters public accountability for their commitments, and enhances the environmental and social performance of IFC and MIGA.

Independent of IFC and MIGA management and reporting directly to the IFC and MIGA Boards of Executive Directors, CAO helps resolve issues raised about the environmental and social impacts of projects through a neutral, collaborative, problem-solving approach via its Dispute Resolution function. It also reviews IFC’s and MIGA’s compliance with environmental and social policies, assesses related harm, and recommends remedial actions through its Compliance function. Additionally, CAO provides advice to IFC, MIGA, and their Boards to enhance environmental and social sustainability performance and minimize the risk of harm.

Complaints may relate to environmental and social harm regarding any aspect of the planning, implementation, or impact of a project or sub-project, and can be made by any individual, group, community, entity, or other party affected or likely to be affected by the environmental or social impacts of an IFC- or MIGA-financed business activity.

Complaints can be submitted by any of the following methods:

Online form: available at https://www.cao-ombudsman.org/
Mail/Hand Delivery to: 2121 Pennsylvania Avenue, NW, Washington, DC 20433, USA
Voice mail: +1 202 458 1973
Email: cao@worldbankgroup.org
SMS, WhatsApp, Telegram, and Signal: +1 202 650 2627

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.

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

Task Title & Description	Anticipated Completion Date
Staff Training	11/30/2019
Complete development of SEMS	02/28/2018
Board approval of the E&S policy	12/31/2017

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