BMCE, formally a government-owned bank, was privatized in 1995. As of August 31, 2007, the largest shareholder, with a 38.5% direct and indirect stake, is the Finance.com Group, which is controlled by the Benjelloun family. Finance.com is a major Moroccan group with investments in numerous sectors including financial services, insurance, telecommunications, transport and tourism. Principal foreign shareholders are the French Credit Industriel et Commercial (CIC, 10%), Caja de Ahorros del Mediterraneo (CAM, 5%), and Banco Espirito Santo (2.77%). The pension fund Caisse Interprofessionnelle Marocaine de Retraites (CIMR) and Mutuelle Centrale Marocaine d’Assurance (MCMA) respectively own 7.17% and 5.57%. About 2.85% is held by employees and 22.6% is listed on the Casablanca Stock Exchange.

The project consists of a subordinated loan of €70 million to BMCE to be eligible for classification as tier II capital by Bank Al-Maghrib, the central bank of Morocco.

94.41 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	94.41
Equity

* These investment figures are indicative

The bank is headquartered in Casablanca, Morocco. BMCE’s network comprises 339 branches and an off-shore branch in Tangier. BMCE’s network also includes branches and representative offices in Europe, China and UAE. The Bank also has subsidiaries and affiliates in London (Medicapital Bank), Mali (Banque de Développement du Mali) and Congo (Congolaise de Banques).

The project is expected to make a significant contribution to economic development both in Morocco and Africa, through the transfer of knowledge and expertise transfer from BMCE to its subsidiaries. The project will also contribute to channeling foreign direct investments and trade flows to frontier markets.

IFC’s role will be to: - stimulate South-South investment by supporting the Bank’s international expansion, - support the development of BMCE’s banking network in Africa, and - support the introduction of the first Upper Tier II capital issue in Morocco.

This project has been classified as a Category FI project according to IFC’s environmental and social review procedure. IFC will work with BMCE to determine the applicable social and environmental performance requirements, if any, that would include a combination of:

- the IFC financial institutions exclusion list,
- the applicable national social and environmental laws and regulations, and/or
- the IFC performance standards.

IFC will also review, if required, the capacity of the FI to manage social and environmental risks and to establish and maintain a Social & Environmental Management System (SEMS). If required, IFC will suggest Supplemental Actions to address any gaps in the SEMS.

Based on the review, IFC will work with BMCE to define requirements according to which BMCE will:

- Develop an, or upgrade if necessary any existing SEMS, prior to disbursement to the satisfaction of IFC;
- Identify responsible, qualified persons to manage and implement the SEMS;
- Implement the SEMS, to ensure that its investments/activities supported by IFC financing are in compliance with the Applicable Performance Requirements;
- Establish similar social and environmental policies and procedures in banks in which it will take a controlling stake using IFC funding;
- Submit a periodic report to IFC as per a format to be provided by IFC.