Summary of Proposed Investment
Project Number
27241
Company Name
RESIDUAL DEBT SERVICES LIMITED
Date SPI Disclosed
Jun 9, 2008
Country
South Africa
Industry
Financial Markets
Projected Board Date
Jul 10, 2008
Status
Active
Sector
Commercial Banking - General
Department
Global Industry, Financial Markets
Environmental Category
C - No Impact
Previous Events
Approved : Sep 15, 2008
Signed : Dec 10, 2008
Invested : Jan 12, 2009
Project Description
The project consists of a subordinated Tier-II qualifying debt to African Bank Limited (African Bank or the Bank), the leading provider of short to medium term unsecured retail loans to formally employed low- to middle-income individuals in South Africa. The project aims to:
- broaden access to finance to the underserved markets notably unsecured finance largely used for incremental housing construction and education purposes;
- show confidence in a financial institution that is reliant on wholesale funding, thereby ensuring continued growth and credit product availability to the lower-middle market segments even in the midst of relative market uncertainty.
Although the proposed financing will enhance the balance sheet of the Bank overall, it will be designed to support the expansion of credit for housing and education purposes, both of which are critical to the social and economic development of previously disadvantaged individuals in South Africa.
- broaden access to finance to the underserved markets notably unsecured finance largely used for incremental housing construction and education purposes;
- show confidence in a financial institution that is reliant on wholesale funding, thereby ensuring continued growth and credit product availability to the lower-middle market segments even in the midst of relative market uncertainty.
Although the proposed financing will enhance the balance sheet of the Bank overall, it will be designed to support the expansion of credit for housing and education purposes, both of which are critical to the social and economic development of previously disadvantaged individuals in South Africa.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
Nga Kugotsi, Group Treasurer
African Bank Limited
59 16th Road, Midrand, 1686
South Africa
Telephone: +27 11 256 9242
Fax: +27 86 601 2623
E-mail: nkugotsi@africanbank.co.za
Website: www.africanbank.co.za
African Bank Limited
59 16th Road, Midrand, 1686
South Africa
Telephone: +27 11 256 9242
Fax: +27 86 601 2623
E-mail: nkugotsi@africanbank.co.za
Website: www.africanbank.co.za
For Inquiries and Comments About IFC, Contact
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster