UT Bank Limited was incorporated in April 1996 as Unique Trust Financial Services Ltd (UTFSL). The Bank of Ghana formally granted the company a license to operate as a non-bank financial institution and a certificate to commence business in April, 1997. UTFSL listed on the Ghana Stock Exchange (“GSE”) in November 2008 and by virtue of its acquisition of UT Bank in June 2010, the Bank was reverse listed. The shareholder of reference is UT Holdings Limited. UT Bank’s primary sponsor is UT Holdings Limited a private company which holds 60% of the issued equity in the Bank. UT Holding is owned by 2 founding entrepreneurs Mr. Prince Amoabeng (CEO of UT Bank) and Mr. Joseph Nsonamaoh (Non-Executive Chairman of UT Bank). Of the remaining shareholding 10.3% is controlled by Investec Asset Management Public Funds, 6.5% by Kura Capital and approximately 18.5 is % held by the general public none of whom control more than 5% of the Bank. UT Holdings has various other subsidiaries; these include UT Collections (Debt recovery services), UT Logistics (port clearance and warehousing services) and UT Properties (Real estate valuations and development consulting). The Holding Company has also set up lending institutions in Nigeria and Germany (targeting the Ghanaian Diaspora) expansion into Zambia and South Africa is at an advanced stage.

The focus segment of UT Bank is the SME market. Growth in the SME sector had been unpredicted in recent past with UT having experienced compound annual growth of over 50% over the past 5 years. It is anticipated that growth will continue at the similar levels for the medium term. The SME focus and strategy to successfully expand operations into the unbanked segment justify the development role for IFC; the proposed investment will therefore provide the risk capital to enable UT bank to achieve its reach targets in a sustainable manner.

The total Project cost will be up to $30mn comprised an Equity or Tier 1 qualifying investment of between $10–$15mn. A Senior Unsecured Loan Facility of $5mn with a tenor of 5 years. A Trade Finance Facility of $10mn for trade transactions of up to 12 months.

The cost of the Advisory program will be determined once a full scope of the proposed Technical Assistance has been established and agreed with UT Bank.

20.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	5.0
Equity	15.0

* These investment figures are indicative

The proposed facility will be for on-lending in Ghana.

UT Bank Limited Head Office located at:

25B Manet Towers,
Airport City
Accra,
Ghana

The Project is expected to have high development impact in the following areas:

(i) Improved Access to Finance: Injecting fresh capital into the Bank would allow for growth as the Bank would be able to further leverage itself to fund growth in the strategic focus area of SME and the currently unbanked rural populous.

(ii) Demonstration Effect: IFC is helping to demonstrate the soundness and viability of the Ghana Banking Sector. It is expected that there will be new private sector entrants be it via new institutions or additional investment in existing enterprises, this will help to increase the reach of financial services and products in Ghana.

IFC''s additionality to this Project includes:

(i) IFC''s ability to Provide a Package of Equity and Debt, Trade finance support and Advisory Services to Support UT Bank: Few other organizations are able or willing to provide this combination of resources to this type of project. The proposed project will strengthen the Bank''s capital base and enhance its capacity to sustainably manage its growth.


(ii) IFC''s Knowledge and Expertise in SME Banking is Exceptional and Brings Significant Value-Added to the Proposed Project: The low banking penetration within the SME sector in Ghana presents a great opportunity for the Bank to achieve growth. The proposed Corporate governance review and if needed CG Technical Assistance would strengthen the Management and Board oversight of the Bank.

(iii) IFC has a Unique Credibility among Prospective Investors and Local Banking Authorities: IFC has built strong credibility among industry players and government authorities. This credibility will help the Bank raise additional resources should they be required.

This project has been classified as Category FI 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 based on an analysis of the potential Environmental and Social risks associated with the FI portfolio and considering IFC’s investment, determined as the Applicable Performance Requirements the IFC Exclusion List, the National Environmental and Social laws and regulations and the IFC Performance Standards.

IFC also appraised the FI’s Environmental and Social Risk Management System and capacity to implement the same, as well as the Bank’s labor practices according to the IFC Performance Standard 2: Labor and Working Conditions. It was found that E&S assessments are undertaken during the loan review and approval and UT Bank is currently developing an E&S policy. No staff has been formally designated with the responsibility to oversee E&S risk management and an Environmental and Social Management System still needs to be developed. UT Bank was found to be largely in compliance with the PS2 requirements, except for the lack of an Occupational Health and Safety and Emergency Preparedness Plan.

Based on the Applicable Performance Requirements and the review of the Bank’s ESMS and capacity, the project will be required to: (i) Identify responsible, qualified persons to manage and implement the ESMS, prior to commitment, (ii) Develop an Environmental and Social Management System, prior to disbursement/investment to the satisfaction of IFC, (iii) Provide and implement a ESMS Training Plan to ensure relevant staff involved in implementation have adequate capacity, (iv) Commit to implement the ESMS, to ensure that its activities are in compliance with the Applicable Performance Requirements, (v) Submit a periodic report to IFC as per a format to be provided by IFC, and (vi) Develop an Occupational Health and Safety and Emergency Preparedness Plan.