Summary of Proposed Investment
Project Number
8610
Company Name
Seychelles International Mercantile Banking Corporation Limited
Date SPI Disclosed
Feb 18, 1998
Country
Seychelles
Industry
Financial Markets
Status
Completed
Sector
Commercial Banking - General
Department
Regional Industry - FIG Africa
Environmental Category
FI
Previous Events
Approved : Mar 31, 1998
Signed : Feb 19, 1999
Invested : Jun 2, 1999
Project Description
Summary Of Project Information (SPI)
| Project Name | Seychelles-Nouvobanq |
| Region | Sub-Saharan Africa |
| Sector |
Projected Board DateMarch 20, 1998
Company NameNouvobanq
Technical Partner and/or Major Shareholders
The major shareholders are the government of Seychelles & Standard Chartered Bank Plc.
Project Cost Including Proposed IFC Investment
An IFC line of credit of US$10.0 million
Location of Project and Description of Site
Seychelles
Description of Company and Purpose of Project
The project involves an IFC term-loan of up to US$10 million to Seychelles International Mercantile Banking Corporation (SIMBC), generally known by its trade name “Nouvobanq” to be used for trade and project finance purposes by export-oriented local private enterprises. Established in 1991, Nouvobanq is the only locally incorporated commercial bank in Seychelles. As of December 31, 1997, Nouvobanq had an asset and equity level of US$130 million equivalent and US$23 million equivalent respectively. The IFC loan would provide foreign exchange term-finance resources to fund the operational and expansion needs of Seychelles’ private enterprises. In addition, the project will strengthen Nouvobanq’s position as a leading financier to the private sector. Between 1998 and 2001, Nouvobanq projects to finance about US$50 million worth of new investments, of which about 50% (US$25 million equivalent) will be in the form of foreign currency financing. At present Nouvobanq has no other dedicated forex lines. Accordingly, IFC’s loan would fill an important resource gap in Nouvobanq’s future investment funding activities. IFC’s loan is also intended to accelerate the privatization process of Nouvobanq.
Environmental Category and Issues
This is a Financial Intermediary “FI” category project according to IFC''s environmental review procedure. Nouvobanq will be required to undertake an environmental review of eligible borrower''s environmental performance and each sub-project''s compliance with Seychelles Government’s environmental, health and safety laws, regulations and standards as well as applicable World Bank policies and guidelines. In addition, IFC will assess Nouvobanq’s capability to carry out environmental reviews.
| Date SPI sent to InfoShop | February 18, 1998 |
“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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