PROJECT

Projects

Summary of Proposed Investment

Project Number

8725

Company Name

Credit and Savings Help Bank (Cashbank)

Date SPI Disclosed

Oct 30, 1997

Country

South Africa

Industry

Financial Markets

Status

Completed

Sector

Commercial Banking - General

Department

Global Industry, Financial Markets

Environmental Category

C - No Impact

Previous Events

Approved : Dec 11, 1997
Signed : Oct 22, 1998
Invested : Jun 7, 1999

Project Description

Summary Of Project Information (SPI)

Project NameRepublic of South Africa - CASHBANK
RegionSub-Saharan Africa
Sector
Project No008725
Projected Board DateDecember 4, 1997
Company NameCashbank
Technical Partner and/or Major Shareholders

Cashbank was established in April 1995 after 6 years of development and planning by the Group Credit Company (GCC), an NGO established in 1989 to develop financial services for low income groups within South Africa. The bank’s initial capital of US$14 million equivalent was provided principally by a number of South Africa’s insurance companies and the GCC. During 1996/7 CB benefited from an approximate 50% increase in its capital base with the introduction of a number of strong shareholders including IFC (10% stake) and Investec (20%). This increased capital base has strongly positioned the Bank for further growth.     

Project Cost Including proposed IFC investment

US$10 million equivalent

Location of project and Description of site

Cape Town

Description of Company and Purpose of Project
The project involves a direct IFC Rand loan of up to US$10 million equivalent to Cashbank (CB).
CB is a bank established exclusively to service the banking needs of the low income communities of South Africa through the provision of savings facilities, as well as credit for housing, small business, education and personal loans. IFC’s proposed loan will assist the Bank to meet the strong demand for its products.–––––     

Environmental Category and Issues

This is an environmental review category C project. No further review is necessary.

Date SPI sent to PIC October 30, 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