FGB is a wholly owned subsidiary of First Global Holdings Limited, an indirect 100% subsidiary of GraceKennedy Ltd. (“GK” or the “Company”), one of the largest groups of companies of the Caribbean with its primary businesses in the food and financial services sectors. GK started operations in Jamaica in 1922 and besides Jamaica, the company has its shares listed on the Trinidad, Barbados and Eastern Caribbean stock exchanges. FGB was established in 1970 and as of December 2007 had over $365 million equivalent in assets, $206 millions equivalent in deposits and an equity base of $42 million.

Shareholder Composition:
First Global Holdings Ltd ……. 100%

The proposed investment which is subject to sign off by the Jamaican regulators, consists of an equity investment in common shares for up to $10 million and a straight senior loan earmarked for MSME financing for up to $10 million. This investment is expected to assist FGB in the implementation of the growth plan put forth by the management and shareholders.

20.0 million (USD)

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

* These investment figures are indicative

FGB is located in Kingston, and its branch network spans throughout Jamaica.

The successful implementation of the project will

- promote lending to MSMEs;
- increase the number of products and services available for the MSME market and
- underpin the overall growth in the economy, as higher loan volumes for MSMEs should have a significant impact on Jamaica’s economic growth.

IFC is expected to play an important role, as it will:

- enhance FGB’s ability to support the micro and SME segments contributing to deepening the financial services sector in Jamaica;
- provide access to the formal credit for small business owners in Jamaica.
- help to reduce income inequality while fostering domestic demand and economic growth.

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 for types of transactions, size, tenor and industry sectors and determined the Applicable Performance Requirements based on an analysis of the potential Social and Environmental risks associated with the FI portfolio. The Applicable Performance Requirements are:

- The IFC FI Exclusion List
- The applicable National Social and Environmental Laws and regulations and
- The IFC Performance Standards

Based on the Applicable Performance Requirements and FI SEMS and capacity review, the project will be required to:

- Develop a 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