Interbank was incorporated in January 1993, just a few months before the 13-year civil broke out in Burundi. The bank is today one of the leading commercial banks in Burundi, along with Banque de Credit de Bujumbura (BCB) and Banque Commerciale du Burundi (Bancobu).

Interbank was created by Mr. Callixte Mutabazi, Mr. George Coucoulis and Mr. Eugene Rutazibwa. Mr. Mutabazi and Mr. Rutazibwa were respectively then Head of Credit and Head of International Operations at Bancobu. They partnered with local businessmen to form the first privately owned commercial bank in the country.

The main shareholders are: Mr. Coucoulis (20%), Mr. Mutabazi (15.1%), Mr. Arturo Costa (11.4%), Succession Rumbete (9.3%) and IBB Personnel Pension Fund (9.1%).

The project aims to provide Interbank with a subordinated loan of up to $5 million as part of the Africa MSME Finance Program.

Interbank is headquartered in Bujumbura, Burundi and has a network of 24 branches and outlets across the country.

The project, as part of the AMSME program, will strengthen Interbank’s funding base and through the transfer of expertise and best practice, will enable the bank to develop a strong capacity to grow its MSME portfolio. The project will improve credit availability to MSMEs, resulting in an increase in number and volume of loans and thereby contribute to the development and strengthening of the banking sector.

IFC will play the following roles in the project:

- To strengthen Interbank’s capital base to enable the Bank to diversify its customer base towards an MSME portfolio, a customer segment in Burundi with limited access to medium term financing.

- Enhance the competition in the banking sector in Burundi, by helping Interbank grow its market share on a sustainable basis and introduce best practices in the areas of control and risk management.

- Demonstrate the viability and encourage the development of MSME lending in the country, where there is a market gap that impedes sustainable economic growth.

This project involves IFC support for the business of Micro and Small Enterprise finance and has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure. Considering the nature of activities supported, the project will be required to:

- Develop a Social and Environmental Management System (SEMS) relevant to its business process, prior to disbursement, that is satisfactory to IFC, and that ensures that all its investments are screened and processed to avoid supporting activities on the IFC Micro-finance exclusion list and that ensures that its corporate projects are in compliance with the applicable National Environmental and Social Laws and regulations;
- Identify responsible, qualified persons to manage and implement the SEMS
- Demonstrate commitment and resources to implementing the SEMS, and take action to remedy any gaps in implementation on an ongoing basis; and
- Submit a periodic Social and Environmental Performance Report to IFC as per a format to be provided by IFC.