Established in 1989, Ecobank Ghana is a subsidiary of Ecobank Transnational Incorporated (ETI), one of the largest banking franchises in Sub-Saharan Africa head-quartered in Lome, Republic of Togo owned by institutional investors (both regional and international) as well as individual businessmen. With an equity of $382 million and total assets of $3.5 billion, ETI has eighteen subsidiaries strategically spread across West and Central Africa. EBG is a key subsidiary of the group and ranks among the three largest private sector banks in the country. The Bank has 8.4% of the market with total assets of $468 million and equity of $46 million. EBG’s focus has been on corporate banking until recently, but the bank is pursuing an aggressive strategy to develop its retail banking business.

The total project size is estimated at $20 million, composed of a Tier II qualifying subordinated debt.

20.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	20.0
Equity

* These investment figures are indicative

Ecobank Ghana is headquartered in Accra, the capital of Ghana, and has operations in the major cities in Ghana.

The project is expected to support Ghana’s efforts to strengthen the banking sector through stronger and well capitalized banks. Although Tier II Capital is defined in Ghana’s regulatory framework, it has had only a limited use by the commercial banks. The project will contribute to developing the use of Tier II loans as a way of recapitalizing financial institutions while protecting shareholder’s return.

IFC will bring its experience in the banking sector, as well as a deep knowledge of the financial market sector, both at the structuring phase and on an ongoing basis. The proposed IFC investment will enable EBG to strengthen its capital base, which in turn will support the growth and operations of the Bank.

This project has been classified as an FI Type 1 project according to IFC’s Environmental and Social Review Procedure. During appraisal, IFC analyzed the FI portfolio for types of transactions, size, tenor, and industry sectors and determined the Applicable Performance Requirements based on an analysis of the potential social and environmental risks associated with the portfolio and considering IFC''s investment. The applicable requirements are:

- The IFC FI Exclusion List, and
- The applicable National Social and Environmental Laws and regulations.

IFC also reviewed the FI’s existing social and environmental procedures and capacity to implement the same. Based on the applicable requirements and the procedure and capacity review, the FI will be required to:

- Develop a Social & Environmental Management System (SEMS), or commit to an SEMS Plan detailing time bound actions/enhancements related to the establishment and implementation of an SEMS, prior to disbursement to the satisfaction of IFC''

- Identify responsible, qualified persons to manage and implement the SEMS
- Commit to implement the SEMS, to ensure that its investments/activities supported by IFC financing are in compliance with the applicable performance requirements

- Submit a periodic report to IFC as per a format to be provided by IFC