The sponsor of the proposed project is Sasfin Holdings Limited. Sasfin Holdings is a mid-tier specialist banking and financial services group focusing on entrepreneurial corporate, commercial small and medium enterprise (SME), and private clients. Established in 1951, the Group has over the years grown to become a solid and reputable mid-sized financial services group in South Africa. Sasfin Holdings is a publicly held company listed on the Johannesburg Securities Exchange (JSE) since 1987. Sasfin Bank is the flagship subsidiary of Sasfin Holdings.

The proposed IFC investment is a senior loan of up to $10 million equivalent, with a tenor of up to 7 years, of which up to $7.7 million equivalent is for IFC’s own account and up to $2.3 million is provided by IFC in its capacity as the implementing entity of the Canada Climate Change Program. In addition, IFC may provide advisory services for capacity building which will include a training program for Sasfin’s equipment finance vendors.

7.70 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	7.70
Equity

* These investment figures are indicative

Sasfin is headquartered in Johannesburg, South Africa and has offices in major cities across South Africa. Eligible Transactions will be made throughout South Africa.

The Project is expected to generate a range of environmental and economic benefits related to the development of sustainable energy finance and a stream of energy efficiency project investments. Specifically, the Project will i. facilitate energy efficiency investments by Sasfin''s small industrial and SME sub-borrowers; ii. build Sasfin capacity to finance energy efficiency projects and iii. improve the local and global environment through reduced emissions of greenhouse gases and other conventional pollutants while reducing South Africa''s dependence on fossil fuels.

Long-term funding of up to 7 years with a blend of market competitive terms by IFC and concessional terms by the Canada Climate Change Program will allow Sasfin to enter and expand into the new market niche of energy efficiency financing.
IFC will apply and share its global knowledge in Climate Change and Energy Efficiency investments to support capacity building in Sasfin and therefore shorten Sasfin''s learning process in this new market niche.

This project is a senior loan of up to $10 million for energy efficiency financing and it has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure. Sasfin is an existing client and the Applicable Performance Requirements for the existing investments are the IFC Exclusion List and the applicable national social and environmental laws and regulations. During appraisal, IFC analyzed the FI portfolio for types of loans provided and industry sectors covered, and analyzed the potential Social and Environmental risks associated with the Bank''s activities. Sasfin is a non-retail bank which provides office equipment finance, trade finance, debtor finance and capital equipment finance typically to SMEs in South Africa. Sasfin has an Environmental and Social Management System (ESMS) and undertakes Environmental and Social Due Diligence (ESDD) as part of its loan review process. The appraisal focused on the Company’s implementation of its ESMS and the quality of the ESDD conducted. The Company’s E&S performance was found to be satisfactory, the ESMS procedures are being followed and E&S checklists are completed for all loans (except office equipment finance). The Applicable Performance Requirements for this project remain the Exclusion List and the applicable national environmental and social laws. Recommendations for improvement on E&S risk management have been made to the client and the client has started implementing these recommendations.