40266 - GTFP YKBank

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Summary of Investment Information

Project Number

40266

Company Name

YEMEN KUWAIT BANK FOR TRADE AND INVESTMENT YSC

Date SPI Disclosed

Jan 17, 2023

Country

Yemen, Republic of

Region

Middle East

Projected Board Date

Feb 16, 2023

Environmental Category

C - No Impact

Status

Completed

Last Updated Date

Jun 4, 2025

Department

Regional Industry FIG MCT

Industry

Financial Markets

Previous Events

Approved : Nov 11, 2004
Signed : Jun 29, 2017

Sector

Commercial Banking - Trade

Project Description

The proposed Project (“the Project”) is an investment of up to US$15 million in Yemen Kuwait Bank (“YKB” or “the Bank”) in the form of a trade finance guarantee facility. This project was approved as part of IFC's Global Trade Finance Program or GTFP

Associated Advisory Engagement

The Advisory Service engagement with the bank is to support its Strategy and Transformation Program. The main objective of the Advisory project with YKB is to develop 1) a well-defined and robust risk management framework; 2) a Business Plan and 3) a Digital Financial Services Strategy. This engagement will help the bank to better anticipate and manage its credit, operational, and liquidity risks and would allow the institution to build resilience in a rapidly growing, competitive albeit unstable market context. Given that the project was on hold for almost a year, the Advisory team will re-engage with the bank to confirm composition of the agreed earlier Advisory.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee	7000.0
Loan
Equity

Development Impact

The project builds on GTFP's global platform, increasing access to trade finance to Yemen. The Project will provide increased access to trade finance to the Issuing Bank's customers, including both corporates and SMEs. On the market side, the project will further strengthen the Issuing Bank's cross border connections, increasing the country's integration through both financial and real sector channels. It will help to link more traders to other countries and connect the country's financial markets more deeply.

A non-financial source of additionality includes GTFP's catalytic role as a trusted facilitator among cross border correspondent banks. GTFP's guarantee structure helps to reduce key elements of confirmation risk for banks that provide this essential service for trade finance. 2. The Project taps GTFP's global financial institution network for trade finance, which, along with IFC's trade finance due diligence expertise, increasing the probability of new cross border relationship formation for the Issuing Bank. 3. IFC provides comfort to the Confirming Banks by mitigating non-commercial non-environmental and social risks, such as country, regulatory, project, or political risks, while adhering to IFC's principle of political neutrality. 4. The Project is expected to help the Issuing Bank strengthen its trade finance operations. In addition, the Issuing Bank will benefit from IFC's technical expertise in redesigning its trade solutions and marketing materials.

E&S Category Rationale / Risks and Mitigation

This Project will support short-term trade finance activities. The E&S risks and impacts associated with these activities are considered minimal and the project has therefore been classified as a category FI-3 project in accordance with IFC's Sustainability Policy. The trade finance activities supported by the Project will be required to meet the requirements of the IFC's Exclusion List and other exclusions deemed necessary. The Project will not support any activities with significant E&S concerns such as: (a) involuntary resettlement; (b) risk of adverse impacts on Indigenous Peoples; (c) significant risks to or impacts on the environment, community health and safety, biodiversity, cultural heritage; or (d) significant occupational health and safety risks. It will also not support any activities related to upstream oil & gas production and activities related to coal such as coal mining, coal transportation, coal-fired power plants, or infrastructure services exclusively dedicated to support any of these activities. IFC will also review the details of the underlying trade transactions to confirm that they do not include activities on IFC Exclusion List and any other exclusions.

Contacts

For Inquiries About the Project, Contact

Yemen Kuwait Bank
Maryem Dameem
Head of International Relations
+967 733427003
m.dameem@yk-bank.com
Zubairi Street, Sana’a, Yemen
https://www.yk-bank.com/

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