Summary of Proposed Investment
Project Number
8255
Company Name
Societe Generale Burkina Faso
Date SPI Disclosed
Oct 22, 1997
Country
Burkina Faso
Industry
Financial Markets
Status
Completed
Sector
Commercial Banking - General
Department
Regional Industry - FIG Africa
Environmental Category
C - No Impact
Previous Events
Approved : Dec 24, 1997
Signed : May 7, 1998
Invested : Jun 15, 1998
Project Description
Summary Of Project Information (SPI)
| Project Name | Burkina Faso: Société Générale de Banques au Burkina Faso |
| Region | Sub-Saharan Africa |
| Sector |
Projected Board DateDecember 15, 1997
Company NameSociété Générale de Banques au Burkina Faso (SGBB)
Technical Partner and/or Major Shareholders
IFC would participate in the privatization of a Burkinabè commercial bank, currently named Banque pour le Financement du Commerce et des Investissements (BFCI). As a result of the privatization, the shareholding of the Government of Burkina Faso (GOB) in BFCI would decrease from 66% to 15%. Société Générale (SG), the largest French private bank, would lead a consortium of foreign investors which would purchase a 41% block out of the 66% shareholding currently held by GOB in BFCI. SG would manage the privatized bank, which would be renamed Société Générale de Banques au Burkina Faso (SGBB).
Project Cost Including proposed IFC investment
IFC would purchase from GOB a 10% position in the capital of the Bank for a consideration of up to US$500,000. The Bank’s total assets and equity amount respectively to US$45 million and US$5 million.
Location of project and Description of site
The Bank is located in Ouagadougou, the capital of Burkina Faso.
Description of Company and Purpose of Project
With a 8% market share and 110 total staff, BFCI is a small bank providing basic commercial banking services to lower income individuals and small traders. The privatization and reorganization of BFCI into an efficient bank providing a full range of commercial services will foster competition and improve the quality of banking services in Burkina Faso. The prospect of IFC’s possible investment is an important comfort to GOB in handing over control of the Bank to foreign shareholders and, conversely, to SG in negotiating a fair entry price. In addition, with its proposed 10% share, IFC will play a neutral broker role between local and foreign shareholders holding respectively shares of 49% and 41%.
Environmental Category and Issues
This is a category “C” project according to IFC’s environmental review procedures. Therefore no further environmental review is required.
| Date SPI sent to PIC | October 22, 1997 |
“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”
For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 974-4384
Sponsor / Cost / Location
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