NCBJ was established in 1837 by the Colonial Bank of London, and was bought by Barclays Bank in 1925. The Jamaican Government acquired all the Bank’s shares in 1977, when it took on its identity as NCBJ. NCBJ was listed on the Jamaican Stock Exchange in 1986. Following the merger between NCBJ and Mutual Security Bank Jamaica Ltd. in 1996, the NCB Group (today NCBJ) has become a dominant force in the Jamaican financial sector. AIC acquired NCBJ in March 2002 from the Government of Jamaica as part of rescue package of the financial sector in Jamaica. AIC owns just over 75% of the ordinary shares of NCBJ, held directly through the wholly-owned AIC (Barbados) Ltd. AIC has grown rapidly to become the 11th largest mutual fund company in Canada, with more than US$12 billion assets under management for more than 1 million clients. AIC was acquired by Michael Lee-Chin in 1987, who coined the corporate motto; “Buy. Hold. Prosper.”. Mr. Lee-Chin is credited for growing AIC from a niche fund firm with $1 million in assets under management in 1987, to the conglomerate it is today. AIC has expanded through acquisitions and making alliances with strong reputable financial groups in Canada.

The project it to provide up to $45 million from IFC own account to National Commercial Bank of Jamaica (NCBJ or the company) to support the expansion plans of NCB, its working capital needs, as well as the growth of the Bank’s lending operations.

30.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	30.0
Equity

* These investment figures are indicative

NCBJ is headquartered in Kingston, Jamaica. The Bank has over 50 branches island wide and the largest ABM network of over 100 machines.

The proposed project is expected to have a high development impact in the following areas: - Significant contribution to economic development via increased financing volumes and increased private sector participation. The successful implementation of AIC and NCBJ’s development strategy will: - promote lending in the economy - develop financial intermediation by increasing the kinds of products and services available in the market and - underpin the overall growth in the economy, as higher loan volumes will benefit customers, suppliers and new entrants. - Direct contribution to poverty reduction. The proposed loan will allow NCBJ to provide new products and additional loans to a large underserved group –Jamaican SMEs as well as to expand in the more profitable consumer and personal banking area. The extension of finance to SMEs in particular is expected to stimulate fixed asset investments; business growth and job creation that will in turn help reduce poverty. - Improved financial infrastructure. NCBJ is one of the largest Jamaican banks. By expanding its presence in the market, NCBJ is likely to improve practices and standards in the financial sector. Considering that a part of the proposed IFC loan could be utilized by AIC for expansion in the region, the project is expected to further introduce new products to the market that can be replicated by other Jamaican banks. Key developmental indicators to be monitored will be: - the number of loans originated by NCBJ; - the increase in the types of products and services offered and - the diffusion of best practices in the financial sector.

This is an FI Type 1 project according to IFC’s Environmental and Social Review Procedure. The Bank will be required to:

- establish an environmental management system to ensure that activities financed under relevant operations are consistent with applicable environmental, occupational health and safety regulations of Jamaica,
- designate appropriate individuals who will have responsibility for the environment and who will attend IFC’s environmental management workshops or an approved equivalent, and
- submit to IFC an environmental management plan and annual performance reports.
Location of environmental documents in locally affected community
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