50240 - MFP-SME BIS

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Summary of Investment Information

Project Number

50240

Company Name

Banque Islamique du Senegal

Date SPI Disclosed

Apr 10, 2025

Country

Senegal

Region

Africa

Projected Board Date

Jun 30, 2025

Environmental Category

FI-2 - Limited

Status

Active

Last Updated Date

Dec 14, 2025

Department

Regional Industry - FIG Africa

Industry

Financial Markets

Previous Events

Approved : Jun 30, 2025
Signed : Oct 7, 2025
Invested : Dec 12, 2025

Sector

Commercial Banking - SME Finance

Project Description

The proposed investment consists of an unsecured sharia facility of up to EUR40 million with a up to 5-year tenor to support the only Islamic bank in Senegal, Banque Islamique du Senegal (BIS or the Bank). The funds will enable the Bank to provide sharia compliant financing to micro, small and medium enterprises (MSMEs) (The Project). The Project is a unique opportunity to enhance financial inclusion for underserved MSMEs in Senegal, an IDA country, where Islamic finance remains underdeveloped despite a Muslim population of 96%.

Associated Advisory Engagement

The Project is anticipated to be supported by an advisory engagement from IFC Advisory Services (AS) to help the Bank strengthen its risk management framework to ensure its long-term sustainability.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	40.0
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

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

Development Impact

The Project aims to increase access to finance for MSMEs in Senegal. Senegal also has many entrepreneurs linked to religious communities who operate informally due to a lack of financial services aligned with their beliefs. Islamic banking offers an alternative for these underserved businesses, which are often excluded from the traditional banking system. Expanding access to finance for such segments, can foster social cohesion, self-sufficiency, and long-term sustainable development while promoting formal job creation.

IFC’s additionality is both financial and non-financial: Financial additionality is in the form of: 1.Financial Structure: IFC will provide long-term funding to the Bank through this transaction in a subregion where longer-term financing (5-year) for private entities is scarce or prohibitively costly. This would enable the Bank to better manage its asset-liability maturity mismatch by providing the necessary longer-term liquidity to meet the needs of MSMEs. Furthermore, it would support the Bank to diversify its funding especially given the limited availability of Sharia-compliant resources in the market. 2.Innovative Financing Structure: The Project is a landmark transaction as it will be IFC’s first Sharia-compliant facility in Senegal and WAEMU. Non-financial additionality: Standards Setting: As BIS is looking to grow its MSME portfolio, it will strongly benefit from IFC’s expertise in strengthening its E&S and risk management practices.

Indicator	Metrics	Calendar Year 2022	Calendar Year 2023	Calendar Year 2024
SME share of total loan portfolio	%	Not Available	Not Available	Not Available
Number of Outstanding Loans, SMEs : (target group)	loans	Not Available	Not Available	Not Available
Number of Outstanding Loans, WomenOwned Smes	loans	Not Available	Not Available	Not Available

E&S Category Rationale / Risks and Mitigation

The project consists of a sharia compliant facility to Banque Islamique du Senegal (BIS). The Project will enable the Bank to provide sharia compliant financing to micro, small and medium enterprises (MSMEs). The MSME portfolio by sector includes exposure to: Construction and real estate, Wholesale and retail, Warehousing & storage, Telecommunications, Agricultural production, Finance & insurance, Utilities, Chemicals that are typically associated with E&S risks related to occupational health and safety, waste and hazardous waste management, and air emissions, among others. The E&S risks and impacts associated with the supported MSME activities are considered limited and readily addressed through established mitigation measures and therefore the Project has been categorized as FI-2 in accordance with IFC’s Sustainability Policy.

The Project will not support coal-related activities, IFC Exclusion List or higher risk business activities that may include: 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 labor practices at BIS are generally aligned with IFC Performance Standard 2: Labor and Working Conditions. However, the Bank will enhance its human resources policy by developing an employee grievance mechanism. The bank’s life and fire safety practices will be improved with fire drills and fire audits. For this investment, the Bank will be required to screen eligible MSME loans against the IFC Exclusion List, for higher risk transactions and Senegal environmental and social laws and regulations.

Banque Islamique du Senegal (BIS) is developing an ESMS with the help of a consulting firm and full support from FI’s senior management. The ESMS applies to the whole portfolio and describes the applicable requirements by IFC: the Exclusion List, categorization, National Laws, Performance Standards application, E&S risk assessment form, high risk assessment, integration of the action plan in the legal agreement, monitoring, reporting, roles and responsibilities and grievance mechanism.
The bank has not yet designated an E&S officer, but an interim focal point was designated to coordinate the development of the ESMS that will be integrated into the financing approval procedure
As part of this project, BIS will be required to: 1) Designate an E&S Officer; 2) Develop an ESMS; 3) Provide an E&S training to its staff; 4) Enhance human resources policies; 5) Improve Life and Fire Safety Procedure; 6) Implement the ESMS.

S.no	Title	Anticipated Completion Date
1	Designate an E&S Officer	05/09/2025
2	Develop an Environmental and Social Management System (ESMS)	06/20/2025
3	E&S risk management training	06/20/2025
4	Enhance human resources policies	06/20/2025
5	Improve Life and Fire Safety Procedure	12/20/2025
6	Evidence of ESMS Implementation	09/20/2025

Contacts

For Inquiries About the Project, Contact

Banque Islamique du Senegal
Mouhamadou Matar Diop
Head of Treasury and ALM
+221 33 849 62 62
contact@bis-bank.sn
Almadies Zone 12, niveau rond-point, face route King Fahd, Dakar-Sénégal
bis-bank.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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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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