CBIQ is a publicly listed bank on the Iraq Stock Exchange and is majority owned by Ahli United Bank B.S.C (“AUB”), a Bahrain based publicly listed banking entity operating in the MENA region.

The proposed equity investment is intended to further boost CBIQ’s capital base within the applicable regulatory framework for all commercial banks operating in Iraq.

23.75 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	23.75

* These investment figures are indicative

CBIQ is headquartered in Baghdad, Iraq.

The proposed Project is expected to have a high development impact as it will (i) Provide fundamental banking services to an underserved market; (ii) Expand and help develop financial services and products, (iii) Advance capacity and institution building of CBIQ.

Given the limited depth of equity market in Iraq and the limited capital resources attributable to the prevailing security situation, IFC's equity participation will help CBIQ to further grow their banking activities portfolio by extending its capital base. Furthermore, this co-investment with AUB will make the latter in a better position to further accelerate its continuing initiatives of bringing best practices and experience to assist CBIQ in areas such as corporate governance, risk management, product development and other areas.

The Project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure. During appraisal, IFC will analyze the Bank''s portfolio, for types of transactions, size, tenor, and industry sectors and determine the Applicable Performance Requirements, that would include a combination of: (i) The IFC Exclusion List(s); (ii) The applicable National Social and Environmental Laws and regulations; (iii) The IFC Performance Standards. IFC will also appraise the Bank''s labor practices according to the IFC’s Performance Standards 2: Labor and Working Conditions and review, if required, 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 Bank will be required to: (i) develop an, or upgrade, if necessary, the existing Social and 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 its investments/activities are in compliance with the Applicable Performance Requirements; (iv) demonstrate commitment to applying the labor standards established by the IFC Performance Standard 2: Labor and Working Conditions; and (v) submit a periodic report to IFC as per a format to be provided by IFC