BCI’s main sponsors and shareholders are Caixa Internacional SGPS, S.A, which is a wholly owned subsidiary of Caixa Geral de Depósitos (“CGD”), and Banco Portugues de Investimentos (“BPI”) bank. CGD owns 51% of the Bank and BPI owns 30%. Both CGD and BPI are leading financial institutions in Portugal.

The proposed investment will be in the form of a senior loan of up to $30 million to BCI for IFC’s own account.

30.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	30.0
Equity

* These investment figures are indicative

The location of the proposed project is Maputo, Mozambique. The Bank offers a wide range of financial services through its extensive network comprising more than 90 branches, 140 ATMs and 1,200 Points of Sales.

The project is expected to accelerate the much-needed expansion of credit availability to the underserved markets in Mozambique, including the retail, SMEs, and individual customers. Provision of long term finance to the above segments will assist in private sector development in the country, and enable BCI’s clientele to improve the quality of their lives. The Project will have a tangible impact on MSMEs’ access to financial services in Mozambique, thereby supporting one of GoM’s key goals of reducing poverty by supporting MSMEs. IFC’s Expected Development Contribution: IFC has a number of important contributions in this project: As BCI grows its loan portfolio, and develop a new portfolio in retail and SMEs, the Bank will also have greater access to a more affordable and larger pool of funding resources; Provision of finance, notably the long term funding to the above segments is crucial to foster the development of a robust private sector and a sustainable economic growth, in a poor country like Mozambique. The investment will enable BCI to better manage its asset-liability maturity mismatch.

(i) Provision of long-term funding: allowing BCI to offer wider financing options to MSME clients and to expand in priority segments( corporate lending); (ii) Private sector development : Provide more funding to the private sector, and enhance competition in the financial sector; (iii) Institutional building: the Project will assist in the institutional building by continuing to monitor and enforce compliance to best financial as well as environmental and social practices. (iv) Long term partnership: IFC financing will further strengthen its relationship with CGD and BPI. This will potentially result in working with the CGD and the BPI Group in other

This project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure. During appraisal IFC analyzed the Bank’s lending portfolio for types of transactions, size, tenor and industry sectors, and determined based on the potential social and environmental risks associated with the portfolio and considering IFC’s investment, as Applicable Performance Requirements the IFC FI Exclusion List, the applicable National Social and Environmental Laws and Regulations and the IFC Performance Standards. IFC also appraised the FI’s labor practices, the proposed Social and Environmental Management System (SEMS) and capacity to implement the same. Based on the review BCI will be required to (i) provide the final SEMS, satisfactory to IFC, prior to commitment, (ii) revise the HR Manual to include an anti-sexual harassment policy, (iii) continue to retain designated staff responsible for oversight of the implementation of the SEMS, (iv) commit to implement the SEMS to ensure that its investments are in compliance with the Applicable Performance Requirements, (v) notify IFC of any Category A activity, and (vi) submit quarterly inception reports on the implementation of the SEMS during the first year after disbursement, and (vii) submit a periodic, annual report to IFC as per the format provided by IFC.