Summary of Proposed Investment
Project Number
8907
Company Name
Commercial Bank of Zimbabwe Limited
Date SPI Disclosed
Feb 20, 1998
Country
Zimbabwe
Industry
Financial Markets
Status
Completed
Sector
Commercial Banking - General
Department
Regional Industry - FIG Africa
Environmental Category
FI
Previous Events
Approved : Apr 30, 1998
Signed : Jun 11, 1998
Invested : Jun 26, 1998
Project Description
Summary Of Project Information (SPI)
| Project Name | Zimbabwe-Commercial Bank of Zimbabwe |
| Region | Sub-Saharan Africa |
| Sector |
Projected Board DateJune 30, 1998
Company NameCommercial Bank of Zimbabwe Limited
Technical Partner and/or Major Shareholders
Local institutional investors and shareholders
Project Cost Including Proposed IFC Investment
US$22.5 million including a US$7.5 million IFC equity investment and US$15 million IFC ‘A’ Loan.
Location of Project and Description of Site
throughout Zimbabwe
Description of Company and Purpose of Project
The project is intended to support the privatization of CBZ, the largest GoZ owned bank and the third largest financial institution in Zimbabwe, through the participation of IFC and a reputed technical partner as well as the provision by IFC of forex term-finance resources. IFC will play a very important catalytic role in this project as its participation is critical for completing the privatization of CBZ. Similarly, the project has a number of developmental benefits. First, the partial divestment of IFC’s shareholding to CBZ’s staff will empower local Zimbabweans. Second, the proposed IFC loan would channel much needed foreign exchange term-finance to private sector Zimbabwean enterprises.
Environmental Category and Issues
This is a Financial Intermediary (FI) category project according to IFC''s environmental review procedure. CBZ will be required to undertake an environmental review of eligible borrower''s environmental performance and each sub-project''s compliance with the Government of (country) environmental, health and safety laws, regulations and standards as well as applicable World Bank policies and guidelines. In addition, IFC will assess CBZ''s capability to carry out environmental reviews.
| Date SPI sent to InfoShop | February 20, 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
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