The Bank was listed on the Palestine Stock Exchange in 2005. At end-2007, it had a diversified shareholding structure, with 32% of BoP’s shares held by various members of Shawa family, 54% by private local individual and institutional investors, and 14% by foreign private individual and institutional investors.

The project is aimed to establish long-term partnership with the Bank. The IFC is also working on a number of projects with BoP including: an Affordable mortgage program, Trade Finance Program, and the Student Loan Program The total cost of the project and IFC’s contribution is to be determined.

25.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	25.0

* These investment figures are indicative

BoP is headquartered in Ramallah with a General Management office also in Gaza. The bank has the largest branch network with 31 branches across several cities in West Bank and Gaza.

The project will have strong development impacts. It will:

- support a leading local financial institution in its growth and regional (i.e. Jordan) and international expansion as well as enhance the depth and expansion of the financial system of West Bank and Gaza;
- enhance the Bank’s profile in its focus on banking products and services, including to SMEs and low income people, especially in frontier and conflict-affected cities of Gaza, which is crucial for the sustainable development of the private sector in West Bank and Gaza;
- share IFC’s expertise and knowledge of best practices with the Bank, facilitate capacity and institution building and helping the Bank with effective risk management and governance structures;
- strengthen the Bank’s capacity in environmental and social management;
- support existing and future projects and programs with the bank (eg Housing Mortgage and Student Loan, Private Equity and Funds)
- create a demonstration effect for other institutions to become active in West Bank and Gaza.

The project will have strong development contribution. It will:

- provide long term partnership to a bank operating in a frontier and conflict-affected banking area;
- set a role model for other private investors to increase their exposures in financial markets of West Bank and Gaza.

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

IFC will analyze the Bank''s portfolio, and the activities proposed to be supported with IFC financing 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 Bank 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 Bank will be required to:

- Develop an, or upgrade, if necessary, any 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 supported by IFC financing are in compliance with the Applicable Performance Requirements;
- Submit a periodic report to IFC as per a format to be provided by IFC.