BHBF was created by the Government of Burkina Faso (“GoBF”) in 2006 to support the development of the housing sector and to strengthen the mortgage market in Burkina Faso. The Bank holds a universal banking license with its headquarters based in Ouagadougou. The major shareholders of BHBF are: The GoBF – 40%, Banque de l’Habitat de Tunisie, its technical partner, – 12%, West African Development Bank (“BOAD”) – 10% and a local insurance company (“UAB-Vie”) – 10%. The GoBF’s goal is to continue to progressively decrease its stake in BHBF over time.

The project cost is estimated at up to US$600,000 for an equity investment on IFC’s own account. IFC is expected to purchase shares equivalent to a 15% stake from the GoBF so that the GoBF’s stake in BHBF will be reduced to 25%.

0.60 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	0.60

* These investment figures are indicative

BHBF is headquartered in Ouagadougou, Burkina Faso and has three (3) branches across Burkina Faso.

By supporting the first dedicated housing bank in Burkina Faso, the Project is expected to make a significant contribution to the housing sector in the country by helping to provide a significant portion of the Burkinabe population with an opportunity to access homeownership. IFC’s investment will also help mobilize much needed long-term finance to BHBF, which, in turn, will contribute to financial sector strengthening. Finally, the project will help demonstrate the commercial viability of mortgage lending in Burkina Faso.

IFC’s additionality stems from the provision of a strong combination of equity investment and advisory services to support the sustainable expansion of BHBF at a critical time of the bank growth phase. IFC presence will facilitate the implementation of international best practices in areas such as risk management, corporate governance, mortgage lending and property finance. It will also play a crucial role in the mobilization of much-needed long term finance to support the development of a sustainable mortgage market in Burkina Faso in the middle to long-term run.

This project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure. During appraisal, IFC analyzed the FI portfolio and the activities proposed to be supported with IFC financing for types of transactions, size, tenor and industry sectors and determined as the Applicable Performance Requirements the IFC Exclusion List and the applicable Social and Environmental Laws and Regulations of Burkina Faso. IFC also appraised the FI’s labor practices, existing S&E due diligence procedures and FI capacity to implement the same. Based on the Applicable Performance Requirements and FI SEMS and capacity review, the project will be required to: (i) Identify responsible, qualified persons to manage and implement the SEMS, (ii) Develop a Social & Environmental Management System (SEMS), prior to disbursement to the satisfaction of IFC, (iii) Commit to implement the SEMS, to ensure that its activities are in compliance with the Applicable Performance Requirements, (iv) Submit a periodic report to IFC as per a format to be provided by IFC and (v) Demonstrate commitment to complying with the labor and working conditions established by the IFC Performance Standard 2: Labor and Working Conditions.