The project sponsor is IMI. The proposed PCB shareholder group includes IFC, DOEN Foundation, IMI, as well as the project technical partner, Internationale Projekt Consult (IPC).

- Stichting DOEN based in Amsterdam, was created in 1991 as a philanthropic foundation and socially responsible investor by the Dutch Postcode Lottery. In 1995 DOEN began to support projects to promote small and micro enterprises and strengthen market forces by providing venture capital and issuing subordinated loans. It is now one of the Netherlands’ leading development cooperation agents in this area.

- Internationale Micro Investitionen AG (IMI), a corporation established under the laws of the Federal Republic of Germany, was founded in 1998. Its shareholders include Internationale Projekt Consult (IPC) GmbH, IPC-Invest (IPC employees), the German group KfW/DEG, DOEN Foundation, FMO and IFC. IMI has an equity of €63 million and is the strategic investor in 18 banks around the world today, which are among the leading providers of micro and small business financial services in their respective countries.

- International Projekt Consult GmbH (IPC), a private consulting firm established in 1980 in Germany, whose principal shareholder is Dr. Claus-Peter Zeitinger. IPC is a leading international consulting and financial services company specializing in development and management of microfinance institutions.

Potential Future Shareholder KfW (Germany) has expressed an interest to become a shareholder in the bank, as well as possibly to provide TA funding in an amount to be determined. The shareholding structure will be adjusted to accommodate KfW, which will be accomplished through the sale of IMI’s shares to KfW at par value.

Capital:
The authorized share capital of PCBC will be $3,000,000 and consists of 300,000 shares with a par value of the $10.00 each.

The total project cost is estimated at $5.5 million, to include the share capital of $3.0 million and technical assistance grant funds of $2.5 million. IFC’s investment would consist of a purchase of up to 15% of the common shares of the company for up to $0.5 million equivalent, at par. In addition, IFC expects to contribute up to $0.5 million in the form of a technical assistance grant.

0.47 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	0.47

* These investment figures are indicative

The bank will be headquartered in Kinshasa, Democratic Republic of Congo, with branches in other parts of the country being opened in subsequent years as business demand grows. The bank will focus on making credit and other financial services available to individuals and micro and small enterprises on a commercial basis.

The proposed investment is expected to be strongly developmental -- in terms of its economic impacts, stimulus for business reconstruction, employment generation, confidence-building in the banking sector, and introduction of commercially-oriented microfinance techniques to DRC. In addition to poverty alleviation and related impacts within the MSE target group, the project is expected to yield a number of important demonstration effects. First, the bank will be a best-practice financial institution with sound operating policies, transparent financial reporting, environmental screening procedures and a clear governance structure. Technical Assistance provided to PCB is expected to generate spill-over benefits in the form of trained managers and employees available to other domestic financial institutions. Finally, PCB will contribute to mobilizing MSE savings in due course, although this will not be its initial focus.

IFC Role
Additionality Principle:
The project will provide financing sources for private businesses. Since many local private businesses are small, IFC has developed financial intermediation mechanisms in order to channel investment funds to these companies cost-effectively. This is a challenge, given the state of the local banking system, and IFC’s presence in the shareholding is expected to strengthen the project reputation and financial stability.

Convening Power:
IFC has created micro-finance institutions in several regions since the mid 1990s. IFC has played a particularly key role in being the first international investor in post-conflict economies (Serbia, Kosovo, Angola, Mozambique). In addition, IFC has worked hard to strengthen relationships with its strategic and technical partners in the for-profit micro-finance field including, inter alia, Stichting DOEN Foundation, and IMI. PCB will be IFC’s fourth project with IPC in Africa.

Governance:
IFC''s experience over a range of micro-finance projects has shown that establishment of a specialized financial institution dedicated to micro finance provides a focused and efficient means of reaching the MSE target group. PCB will draw on these and other lessons from IFC’s experience with building financial institutions and emerging best practice in microfinance institutions.

PCB is a category FI Type 1 project according to IFC’s environmental and social review procedure. IMI and project technical partner IPC have developed an environmental management framework to ensure that financial institutions in which IMI invests and IPC manage have appropriate Environmental Management Systems (EMS). IFC''s Environment Division has approved this environmental framework. Under the framework, IPC and IMI will guide PCBC in the development and implementation of an EMS, requiring activities financed to comply with the applicable environmental, health and safety legislation and standards of DRC and IFC’s Microfinance Exclusion List. Implementation of the EMS may involve an orientation in cleaner production and a focus on clients presenting the greatest environmental risk and opportunities. PCB will provide an annual environmental performance report to IMI/IPC.
Location of environmental documents In locally affected community