47713 - Sohar International Financing

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Summary of Investment Information

Project Number

47713

Company Name

SOHAR INTERNATIONAL BANK SAOG

Date SPI Disclosed

Apr 11, 2024

Country

Oman

Region

Middle East

Projected Board Date

May 24, 2024

Environmental Category

FI-2 - Limited

Status

Active

Last Updated Date

Dec 26, 2025

Department

Regional Industry FIG MCT

Industry

Financial Markets

Previous Events

Approved : Jun 10, 2024
Signed : Jun 17, 2025
Invested : Dec 24, 2025

Sector

Commercial Banking - General

Project Description

The Project is a senior loan of up to US$200 million with a 5-year tenor (including a grace period of up to 3 years) to Sohar International Bank SAOG (“Sohar” or the “Bank”). IFC’s own account investment is expected to be US$150 million, with the remaining to be financed by the Managed Co-Lending Portfolio Program (“MCPP”) for which IFC will act as the implementing entity. The use of proceeds for this Project is on-lending to eligible climate finance projects in The Sultanate of Oman including (but not limited to) renewable energy, energy efficiency and clean transportation.

Associated Advisory Engagement

IFC and Sohar are exploring possible environmental & social (E&S) focused advisory services to strengthen the Bank’s E&S risk management practices to support climate finance investments.

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
Syndications	Labeled: Green;Blue;Social-Loans/Bonds
Straight Senior Loan	Labeled: Green;Blue;Social-Loans/Bonds

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

Development Impact

Project outcomes and impacts will be driven through increased access to climate finance in The Sultanate of Oman. As the second largest bank in the country, Sohar has a strong strategic commitment to support the Sultanate of Oman’s transition to NetZero through climate finance. This is further supported by a strong policy commitment by the government to prioritize and promote climate financing across the Sultanate. At the market-level, as part of IFC’s programmatic approach in the country designed to mainstream climate finance, the Project is expected to promote sustainability in the market by helping financial institutions in The Sultanate of Oman adopt international standards and best practices in climate finance (i.e., eligibility criteria, monitoring and reporting of climate assets).

Through this Project, IFC will provide Sohar with long term financing to support the growth of its climate finance portfolio. These will include (but are not limited to) renewable energy, energy efficiency and clean transportation, as well as other types of climate mitigation and adaptation activities. IFC financing will also help to diversify Sohar’s funding structure, which currently relies mostly on deposits and short-term borrowings. The Project will also mobilize up to US$50 million from MCPP which will constitute a third of IFC’s own account investment in this Project. Mobilization of funding from MCPP investors would enable IFC to meet the Bank’s long-term funding needs to strategically scale its climate finance business.

E&S Category Rationale / Risks and Mitigation

Environmental and Social Categorization Rationale – Environment Category (FI-2 - Limited )

The Project is categorized as FI-2 in accordance with IFC Sustainability Policy. For this Project, IFC's E&S requirements will be the IFC Exclusion List, applicable environmental and social national laws and regulations in The Sultanate of Oman and screening out Higher E&S risk transactions as contemplated in the Performance Standards for eligible climate finance portfolio. The Project will not support any activities on IFC Exclusion List, coal-related activities, large-scale wind and solar energy projects where higher risk activities have been identified, and/or borrowers involved in higher-risk business activities involving 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. The Bank will also be required to maintain alignment with IFC’s life & fire safety requirements as per IFC’s Performance Standard 4 and the requirements of IFC’s Performance Standard 2 on Labor and Working Conditions and provide regular E&S performance reporting to IFC. This Project will trigger sub-project disclosure requirements for select climate sub-projects.

Key E&S issues associated with this project relate primarily to the E&S risks of the potential impacts of climate finance activities, and the capacity and systems in place to manage such risks typically associated with (but not limited to) supply chain risks, occupational health and safety, as well as waste management and resources efficiency. The Bank has appointed an assigned ESG Officer, but no Environmental and Social Management System “ESMS” is in place yet. The Bank is currently in the process on developing the ESMS as a condition of disbursement. To mitigate the risks inherent in the Project, Sohar will be required to: develop and implement an “ESMS” which will include i) policies, roles and responsibilities, E&S categorization procedures, screening, and implementation tools; and ii) an E&S risk assessment process to screen out Higher E&S risk transactions as contemplated in the Performance Standards, including large-scale wind and solar energy projects where higher risk activities have been identified, as applicable, and to properly assess and manage E&S risks (including the supply chain risks) of the Bank’s eligible climate finance portfolio. Additionally, the Bank is required to build proper internal and/or external capacity to assess E&S risks associated with sub-projects to be financed including developing and delivering training programs for the ESMS officer and staff involved in ESMS implementation.

S.no	Title	Anticipated Completion Date	Status
1	Develop E&S Management System (ESMS)	06/01/2025	Completed
2	Prepare an E&S Management System (ESMS) Training Plan	06/01/2025	Completed
3	Implement Staff Training on the ESMS implementation	12/30/2026	Pending
4	Provide ESMS implementation records	01/30/2027	Pending

Contacts

For Inquiries About the Project, Contact

Sohar International Bank SAOG
Mr. Abbas Hassan Al Lawati
Head Of Treasury, Investment & Capital Markets
+968-2403-7316
abbas.allawati@soharinternational.com
P.O. Box 44, Hai Al Mina, PC 114, Sultanate of Oman
https://www.soharinternational.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.

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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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