Sasfin is a publicly held company listed on the Johannesburg Stock Exchange in South Africa in 1987.The Non Executive Chairman, Martin Glatt and the Sassoon family (the founders) represented by Roland Sassoon, the CEO, are the major shareholders and have a combined stake of approximately 55%.

IFC’s proposed US$20 million investment in Sasfin consists of (i) a US$10 million equity investment in a listed operating holding company, Sasfin Holdings Limited and (ii) a US$10 million Tier-II loan to Sasfin’s subsidiary, Sasfin Bank Limited.

20.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	10.0
Equity	10.0

* These investment figures are indicative

Sasfin’s headquarters is based in Johannesburg, South Africa. The companies within its group (“the Group”) are located in eleven offices/branches, situated across South-Africa (Johannesburg, Cape Town, Durban, Port Elizabeth, Pretoria, Bloemfontein and Plettenberg Bay) as well as Hong Kong


The Project is expected to have significant development impact as it will enhance Sasfin’s focus on SME lending and strengthen its capacity in environmental and social risk management. The Project will enable the Group to offer wider financing options to South African SMEs, and hence encourage expansion of SME lending to underserved segments of the South African society. Such financing will be crucial for the sustainable development of the private sector across the country that results in improved economic development and poverty reduction. The Project is also expected to contribute to the increased competition in the financial sector and create a demonstration effect for other investors to invest into the SME segment.

Most of the financing raised locally by mid-sizes banks is short-term deposits or interbank facilities. Long-term instruments issued by midsize banks have been constrained to bond issuances and securitization programs. IFC is however able to provide a local currency, floating rate, long-term loan, which is not readily available in the market for mid-sized banks.

This Project has been classified as a Category F1 project according to IFC’s Environmental and Social Review Procedure. During appraisal IFC analyzed Sasfin’s capacity to manage social and environmental risks and to establish and maintain a Social and Environmental Management System, as well as the activities proposed to be supported to determine the applicable requirements. Based on the findings, Sasfin will be required to: (i) develop a SEMS that ensures compliance with IFC’s Exclusion List and the host country S&E laws and regulations within 6 months after disbursement, to the satisfaction of IFC, (ii) identify responsible, qualified persons to manage and implement the SEMS prior to disbursement, (iii) commit to implementing the SEMS to ensure that its activities/ investments are in compliance with the applicable requirements, (iv) demonstrate commitment to applying the labor standards established by the IFC Performance Standard 2: Labor and Working conditions, and (v) submit a periodic report to IFC as per format to be provided by IFC.