29680 - AB Bank Rwanda

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Summary of Proposed Investment

Project Number

29680

Company Name

AB BANK RWANDA LIMITED

Date SPI Disclosed

Feb 5, 2013

Country

Rwanda

Industry

Financial Markets

Projected Board Date

Mar 15, 2013

Status

Active

Sector

Commercial Banking - Microfinance

Department

Global Industry, Financial Markets

Environmental Category

Previous Events

Approved : Apr 24, 2013
Signed : Jul 9, 2013
Invested : Sep 20, 2013

Project Description

The proposed project consists of an equity investment and a local currency loan to support the creation and expansion of a microfinance bank in Rwanda, AB Bank Rwanda Limited (ABR). ABR will be a greenfield microfinance bank sponsored by Access Microfinance Holding AG (AccessHolding), an investment company, and LFS Financial Systems, an associated German consulting firm with recognized expertise in microfinance. The Bank will specialize in providing a broad range of financial services to urban and semi-urban micro, small and medium enterprises (MSMEs) as well as low income individuals in Rwanda. It is expected that after five years the Bank will have ten branches, a loan portfolio of US$32 million, comprising over 25,000 customers.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	2.37
Equity	0.91

Development Impact

The project will have a high development impact considering that microfinance has been shown to play a major role in poverty and unemployment reduction in developing countries. The project will provide MSMEs in Rwanda with greater access to finance, create economic opportunities and develop the local economy. In addition, the project will promote commercial oriented microfinance in Rwanda and provide a strong demonstration to the microfinance sector.

IFC brings extensive microfinance expertise to the project, including in the creation of microfinance banks in Africa. In addition, IFC offers a unique combination of investment and advisory services. These contributions will support ABR''s ability to start operations, effectively scale up and build local management capacity. Among others, IFC will support ABR meet best practice standards in terms of: (i) insurance, (ii) environment and social standards, and (iii) AML/CFT.

The project has been classified as a Category FI-3 project according to IFC’s Environmental and Social Review Procedure. ABR will provide microfinance services to low income earners and micro and small enterprises in Rwanda engaged in low risk sectors which have minimal or no adverse environmental or social impacts. The Applicable Performance Requirements for the project are the Exclusion List and the applicable National Laws in Rwanda.

Contacts

For Inquiries About the Project, Contact

Christoph Diehl
Access Microfinance Holding AG
Schoenhauser Allee 10-11
10119 Berlin
Germany
Telephone: +49-(0)30-30 87 47 34
E-mail: mailto:Christoph.Diehl@accessholding.com

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This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors' consideration of the proposed transaction. It is not an offer of shares to the public and is intended solely to enhance the transparency of IFC’s activities. This document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. The following SPI is disclosed in accordance with IFC’s Policy on Disclosure of Information that went into effect April 30, 2006.

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

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