The Orix Group (30% stake through Orix Japan and Orix Pakistan). A global partner to IFC with active or proposed joint investments in MENA, ECA, and South Asia. Active exposure to the Sponsor is a total of $ 31.0 million on account of investments in MENA (Egypt, Oman, Pakistan, Saudi Arabia). Of these investments, $ 30.5 are senior loans and all are current. Saudi Investment Bank (38% stake). SAIB is a leading full service Saudi bank, established in 1977 and publicly listed on the Saudi stock exchange. At YE’09, SAIB posted a net income of $ 139.0 million over total assets of $ 13.3 billion. It has a long-term foreign currency rating of A- from S&P and Fitch (reaffirmed June 09).

The total project cost is $20 million in the form of a Sustainability Finance Line (A Loan) of up to $20 million for up to 7 years including a grace period of 24 months. The loan will be used by SOLC for on-lending, in the form of financial leases, to SMEs meeting certain eligibility criteria of IFC’s SF program. In addition, there can be an advisory services component to help the Company build the capacity of its marketing and loan origination staff to increase utilization of the line.

20.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	20.0
Equity

* These investment figures are indicative

SOLC is headquartered in the city of Riyadh within the Kingdom of Saudi Arabia, with branches within different cities in all 3 regions of the Kingdom of Saudi Arabia, namely the Central Region (Riyadh), Western Region (Jeddah) and Eastern Region (Al Khobar and Jubail). The company provides medium term asset financing to all productive sectors of the economy the Kingdom of Saudi Arabia.

The project will help SOLC, a leading leasing company in Saudi Arabia, develop an "energy efficiency" portfolio. The size of the portfolio and the number of SMEs using this financing will be an indication of the success of the program and will have knock-on effects (though difficult to quantify) on raising the visibility of that form of financing in the Kingdom. By helping the Company introduce this innovative product, the project is also boosting the Company's competitive edge which should reflect on its growth and margins. Finally, as this would be the first SF funding provided by IFC in the region, it will likely have demonstration effects for replication in the region both by Orix and others.

1. Long term financing: the Company has been able to procure only 3-year funding from local banks. IFC's 7-year loan will enable the company to offer longer-maturity financing 2. Advisory services: because of the novelty of the concept of energy efficiency financing, IFC's SF program would be at a position to help the Company develop a new product line and build the capacity of markeing personnel and loan officers. SOLC had already expressed interest in developing ties with distributors of SF eligible equipment and hope to gain a distinct competitive advantage by introducing SF financing in the country.

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, for types of transactions, size, tenor and industry sectors and determined the Applicable Performance Requirements based on an analysis of the potential Social and Environmental risks associated with the FI portfolio and considering IFC’s investment. The Applicable Performance Requirements are :
 The IFC FI Exclusion List; and
 The applicable National Social and Environmental Laws and regulations

IFC has also appraised the FI''s labor practices and reviewed the FI''s existing SEMS and there are gaps in the client''s system and capacity. These will be incorporated into a supplemental action plan for this transaction.

The FI has satisfactorily informed the IFC regarding its labor and working conditions.

Based on the Applicable Performance Requirements and FI SEMS and capacity review, the project will be required to:
 Develop a Social & Environmental Management System (SEMS), prior to commitment to the satisfaction of IFC
 Identify responsible, qualified persons to manage and implement the SEMS
 Commit to implement the SEMS prior to disbursement, to ensure that its investments/activities are in compliance with the Applicable Performance Requirements
Submit a periodic report to IFC as per a format to be provided by IFC