BoA Mali was established as a privately owned commercial bank in 1982 by Mr. Paul Derreumaux – the main sponsor – and other Malian investors. In 1988, the main sponsor created African Financial Holding (AFH), a holding company registered in Luxembourg, to support the development and growth of the BoA Group, with consistent performance standards. AFH holds 49.9% of BoA Mali. BOA-Mali is the second largest bank in Mali and provides corporate finance, retail banking, trade finance, and other financing activities. Its network consists of 10 branches, including the headquarters, and employs 175 staff.

The IDA-IFC RSF will cover a portfolio of loans to SMEs and microfinance institutions generated by BoA Mali of up to $12.5 million. IDA-IFC will provide a guarantee directly to BoA Mali for the CFAF equivalent of up to $6.25 million to cover 50% of all portfolio losses.

6.50 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee	6.50
Loan
Equity

* These investment figures are indicative

The loans will be made to SMEs and microfinance institutions in Mali.

Consistent with the objective of supporting sustainable private sector development, this RSF contributes to high development impact in two key, high-priority areas: - Development of the financial sector in Sub-Saharan Africa: Improving the capacity of banks can lead to increased efficiency and stability in the financial markets. A sound financial sector contributes to the development of the local economy and attracts foreign investment. - Development of the SME sector: The SME sector makes up a large share of Mali’s economic output and makes several vital contributions, including the creation of jobs and increasing economic activity. Increased access to finance and capacity building for this sector, facilitated by the RSF, can lead to higher levels of entrepreneurial activity, private sector development and improvement in economic output. Furthermore, the project would support the GoM’s objective of accelerating poverty reduction by furthering sustainable, equitable economic growth and will: - increase SME access to medium term finance; - promote the competitiveness of selected industries, including enhancing linkages and know-how transfer between large businesses and SMEs and working within high potential value chains to alleviate critical bottlenecks identified through careful supply chain analysis.

IFC is expected to play two important roles: - as an advisor to the GoM on the program design including setting criteria for selecting banks and AS; and - as an investor providing financial support to the banks. IFC brings knowledge of best practice in structuring commercial risk-sharing instruments and will also play a strong role in administering the RSF.

This project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure. IFC will analyze the FI portfolio, for types of transactions, size, tenor and industry sectors and determine the Applicable Performance Requirements, if any, that would include a combination of: The IFC FI Exclusion List(s) and The applicable National Social and Environmental Laws and regulations.

IFC will also review 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, the project will be required to:

- Develop or upgrade an existing Social & Environmental Management System (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 are in compliance with the Applicable Performance Requirements
- Submit a periodic report to IFC as per a format to be provided by IFC.