SPCB was incorporated in April 1994 and commenced operations in May 1995. It is majority owned Saudi Pak Industrial & Agricultural Investment Company. It is listed at all the three stock exchanges of Pakistan.

The total project cost will depend on the final share price to be agreed between the buyers and sellers. IFC is expected to take up to 19% stake in the Bank.

60.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	60.0

* These investment figures are indicative

The Bank is head quartered in Islamabad, Pakistan and has branches all over the country in 21 cities. The Bank does not have any branch outside Pakistan. The Central Office of the Bank is located in Karachi at the following address:

Saudi Pak Commercial Bank Ltd.
Central Office, Saudi Pak Building,
I. I. Chundrigar Road, Karachi - 74200
Pakistan

This project is expected to have a high developmental impact by fostering competition and the provision of quality banking services in an increasingly private sector-led financial sector in Pakistan. The Bank will primarily focus on SME and Consumer financing which will result in increased and improved access to finance to those underserved segments. The project will help consolidate & strengthen the financial sector in Pakistan. Due to liberal licensing policy in the past, Pakistan still has 37 banks (down from 46 in 1997). Excluding the five large banks (Tier I banks), there are still around 20 banks which together hold a mere 9% share in the banking system. The Bank is currently sustaining losses and need recapitalization. The project will bring in deep pocketed sponsors, an experienced team of seasoned bankers with extensive experience in banking and successful track record in turning around banks. Finally, the project will positively impact the economic development of the country, through contribution to GDP growth, increased public finance, and higher FDI and employment creation.

IFC’s role in this project stems from its ability to engage strategically in the Banking sector, and to support the Bank in improving outreach and access to finance to SME and consumer financing. IFC is also expected to play a role in improving corporate governance, efficiencies and stronger operating performance resulting from the introduction of international best practices at SPCB. IFC is keen to introduce the “Environment and Social Standards” (ESS) in the banking sector in Pakistan. IFC has already taken steps to launch this initiative. Broad based strategic partnership with SPCB is expected to support the initiative.

This project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure.

During appraisal, 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; and/or
- 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, the project will be required to:

- 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;
- 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.