Sponsors: FIMBank was established by Kuwaiti Interests for Financial Investments (KIFFI) together with a group of institutional investors. FIMBank is registered under the laws of the Republic of Malta and was granted its banking license in November 1994. The license enables FIMBank also to conduct full banking activities in all currencies, except the Maltese Lira. The bank is supervised by the Maltese Financial Services Authority (MFSA). As of November 2004, Fitch Ratings assigned FIMBank a long-term FCY rating of BB with a stable outlook. As of December 2004, FIMBank’s shareholders are as follows: Shareholder % owned Kuwaiti Interests for Financial Investment KSC – Kuwait 26.08% Global Financial Holdings NV – Kuwait 23.63% Bank of Valletta plc. – Malta 9.46% Astrolabe General Trading Contracting Co. – Kuwait 6.52% Mohammed Ibrahim Marafie – Kuwait 5.30% Kuwaiti Consulting and Investment Company KSC – Kuwait 3.03% Mehdi Ouazzani Hassani Morocco 3.03% Fouad M T Alghanim 3.03% Other private individual and corporate holdings 19.92% Total 100.00%

IFC’s investment in FIMBank will be structured as a subordinated long term loan with an option to convert into equity at the group level.

10.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	10.0
Equity	0.0

* These investment figures are indicative

FIMBank is headquartered in Malta. The factoring JVs will be established in five target markets – Argentina, Brazil, Russia, China and Dubai.

Developmental Impact: The developmental impact of this project is substantial. It will: - help expand the provision of trade finance products to emerging markets; - establish joint-venture factoring/forfaiting companies in a number of developing countries; - provide new type of financing options to SMEs in these target markets; - transfer technology and modern management skills for the development of factoring as a stand-alone product line in the target countries; and - provide a strong demonstration effect for ventures in the financial sector and in the development of international trade finance practices in the countries. By helping manage trade risks and provide value added services, factoring and forfaiting would enable exporters, including SME’s, to undertake a larger volume of trade than would otherwise be the case. IFC’s Role: IFC has a strong role in this Project. IFC’s tier II financing will strengthen the bank’s capital structure and enable it to grow further. IFC’s investment will enhance FIMBank’s credibility in the target markets and enable it to expand operations in several developing countries. The IFC ownership will also enable FIMBank to obtain loan and equity funding from other sources, as well as enhance the success of its potential listings in Kuwait and London. FIMBank at times is required to re-confirm its L/C confirmations; it is expected that with a more diverse shareholding structure which includes IFC, the bank may not be required to do so in the future. Given its deep knowledge of the financial sector, IFC will be able to provide introductions to FIMBank to local partners in these countries, and assist in structuring joint-venture investments. Since factoring is a new product in many countries and will require legislative and governmental action, IFC may be able to assist its partners in this area to ensure that the conditions for the success of the new enterprise are in place.

Based on the available information, this is a Category C project according to IFC''s environmental and social review procedure. FIMBank will be required to appoint a staff member responsible for environmental issues who will participate in IFC''s environmental training workshop. FIMBank will be required to review potential commitments to ensure that the underlying business does not involve any activity on IFC''s Exclusion List.
Location of environmental documents in locally affected community