The Project Company is Eastern Bank Limited (EBL), an existing IFC Client. EBL came into being as a banking company through the enactment of the BCCI (Overseas) Ltd. (Reconstruction) Scheme 1992 by the Government of Bangladesh on August 8, 1992. The Bank started commercial operations on August 16, 1992. Initially, the Government of Bangladesh held a 20% equity stake in the Bank, which was divested in the year 2000. Subsequently, a new management team was put in place to run the Bank in 2001. In March 2003, the Bank was listed on the Dhaka Stock Exchange and the following year it was listed on the Chittagong Stock Exchange. The Bank’s LT credit rating is AA and ST rating is ST-2 according to CRISL, a local rating agency. The general public holds 90.12% of the Bank’s shares, followed by financial institutions with 9.88%.

The total project cost will be up to $30 million, comprising an IFC short term loan of 12 months, renewable twice, for a maximum period of up to 3 years.

30.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	30.0
Equity

* These investment figures are indicative

The Bank is headquartered in Dhaka, Bangladesh. The Bank has 49 branches, including 39 SME centers, one offshore banking unit (OBU), 6 Priority Centers, 6 Kiosks and 74 of its own ATMs. Transactions can be made throughout the country.

The key indicators for this Project will be the increase in number and value of short term transactions to finance trade customers, including SME working capital needs and number of SMEs financed. By providing local banks with much-needed FX liquidity and facilitating their access to the commercial loan market, the Facility will increase the range of funding options available to them. The Facility will help accelerate economic growth in Bangladesh by providing trade customers, including SMEs & exporters, with the necessary FX liquidity to finance their working capital needs. IFC’s loan will support job preservation in the small business sector that may otherwise have been forced to reduce staff in the face of financing constraints

The key indicators for this Project will be the increase in number and value of short term transactions to finance trade customers, including SME working capital needs and number of SMEs financed. By providing local banks with much-needed FX liquidity and facilitating their access to the commercial loan market, the Facility will increase the range of funding options available to them. The Facility will help accelerate economic growth in Bangladesh by providing trade customers, including SMEs & exporters, with the necessary FX liquidity to finance their working capital needs. IFC’s loan will support job preservation in the small business sector that may otherwise have been forced to reduce staff in the face of financing constraints

This project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure.

IFC will analyze the FI portfolio to identify high risk sectors and determine the Applicable Performance Requirements that would include a combination of: (i) The IFC Trade Finance Exclusion List; (ii) The applicable National Social and Environmental Laws and regulations; and (iii) Eligibility Criteria/E&S Checklist for high risk sectors.

IFC will also appraise the FI’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).

Based on the review, the project will be required to:
· Develop a Social & Environmental Management System (SEMS), to the satisfaction of IFC
· Identify responsible, qualified persons to manage and implement the SEMS
· Commit to implement the SEMS, to ensure that its investments/activities supported by IFC financing are in compliance with the Applicable Performance Requirements
· Demonstrate commitment to applying the labor standards established by the IFC Performance Standard 2: Labor and Working Conditions
· Submit a periodic report to IFC as per a format to be provided by IFC