The project sponsor is Zanaco. Zanaco is a full service commercial bank and is one of Zambia’s top 3 banks by assets size. Zanaco specializes in broad based retail banking and corporate banking, including trade finance, foreign exchange trading and project and structured finance.

The major share holders of Zanaco are Rabo Financial Institutions Development B.V. (“Rabobank”) and the Government of the Republic of Zambia (“GRZ”). Zanaco is listed on the Lusaka Stock Exchange.

The proposed investment will be in the form of a loan of up to $25 million for IFC’s own account.

25.0 million (USD)

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

* These investment figures are indicative

The location of the project is Lusaka, Zambia.

The project is expected to contribute to private sector development in Zambia by providing long-term finance to one of Zambia’s major financial institutions for on-lending to the bank’s selected local customers, thus supplementing the country’s low foreign direct investment. The project will enable the Bank to provide more affordable long term financing for agriculture and support corporate and medium enterprises and have a catalytic effect on the small and medium sized sector by enhancing the bank’s ability to on-lend funds to underserved sectors.

IFC contributions in this project include providing US Dollar term funding that is currently not available from other commercial sources and to enhancing Zanaco’s ability to provide affordable financing to previously underserved market segments.

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, and determined as the Applicable Performance Requirements the IFC Exclusion List, the applicable Zambian Social and Environmental Laws and regulations and the IFC Performance Standards. IFC will also appraise the FI’s labor practices according to the IFC’s Performance Standard 2: Labor and Working Conditions, and review the capacity of the FI 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 project will be required to: (i) develop a Social & Environmental Management System (SEMS), prior to disbursement to the satisfaction of IFC, (ii) identify responsible, qualified persons to manage and implement the SEMS, (iii) commit to implement the SEMS, to ensure that the activities supported by IFC financing are in compliance with the Applicable Performance Requirements, (iv) demonstrate commitment to applying the labor standards established by the IFC Performance Standard 2, and (v) submit a periodic report to IFC as per a format to be provided by IFC.