The sponsor of the project is Calyon (formerly Credit Lyonnais). BNI (Bankin’ Ny Indostria) was created in 1976, following the nationalization of the financial system, from the merger of the Banque Nationale de Paris (BNP) subsidiary in Madagascar and a local investment company. Since January 1, 1991, Credit Lyonnais has held the majority of BNI-CLM capital as shown in the table below: BNI-CLM’s Shareholding Structure Shareholders Percentage of holding Credit Lyonnais Global Banking 51.00% Government of Madagascar (GoM) 32.58% IFC 10.00% Banque de la Reunion 2.00% BNI-Credit Lyonnais Madagascar staff 4.42% Total 100.00% BNI-CLM is predominantly a commercial bank with a network of 20 branches. Despite the difficult economic conditions that have prevailed in the country since the 2002 crisis, as well as the increased competition, BNI-CLM has shown strong and stable growth and profitability to date. Over the past three years, BNI-CLM’s total assets grew from MGF 1,943.8 billion ($305.2 million equivalent) to MGF 2,815 billion ($307.65 million equivalent) and its equity base from MGF 147 billion ($23.1 million equivalent) to MGF 232.5 billion ($25.4 million equivalent). At end of December 2004, BNI-CLM’s ROAA and ROAE were 3.33% and 40% respectively.

IFC’s investment will be in the form of a loan of up to Euro 10 million ($13 million equivalent) to BNI-CLM.

12.93 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	12.93
Equity

* These investment figures are indicative

The location of the project is Antananarivo, Madagascar.

The project is expected to have a significant developmental impact by: - addressing the shortage of foreign currency and term funding that is needed to finance long-term investments and initial working capital in key sectors of the economy; - supporting the country’s recovery process from the 2002 crisis by rehabilitating the private sector and creating jobs; and - ultimately contributing to alleviate the extreme poverty resulted from the crisis. BNI-CLM has a strong pipeline of projects in the hotel/tourism, agribusiness, textile and fishery industries which plays a very important role in generating local employment and enabling the business and economic environment in the country. IFC has a number of significant roles in this project: - first, IFC’s investment will allow BNI-CLM to provide critical term finance to private Malagasy companies, at a time when access to such resources continues to be scarce; - second, IFC’s investment will enable BNI-CLM to grow existing term finance activities; and - third, by providing BNI-CLM with a long-term facility, IFC will signal its successful experience in and commitment to the Malagasy financial sector.

This is an FI Type 1 project. BNI-CLM will be required to develop an environmental management system. BNI-CLM must ensure that investments under relevant operations meet host country environmental, health and safety requirements. IFC will assess BNI-CLM’s capacity for environmental review.
Location of environmental documents in locally affected community