Summary of Proposed Investment
Project Number
8914
Company Name
Palestine Mortgage and Housing Corporation Limited
Date SPI Disclosed
Mar 25, 1998
Country
West Bank and Gaza
Industry
Financial Markets
Status
Completed
Sector
Primary Mortgage Institutions
Department
Regional Industry FIG MCT
Environmental Category
C - No Impact
Previous Events
Approved : Jul 21, 1998
Signed : Apr 22, 1999
Invested : Apr 13, 2000
Project Description
Summary Of Project Information (SPI)
| Project Name | West Bank & Gaza-Palestine Mortgage & Housing Corporation (PMHC) |
| Region | Central Asia, Middle East and North Africa |
| Sector |
Projected Board DateApril 30, 1998
Company NamePalestine Mortgage & Housing Corporation (PMHC)
Technical Partner and/or Major Shareholders
PMHC’s major local sponsors are Palestine Development and Investment Co. Ltd. and the Arab Bank Group. Palestinian National Authority and the Palestinian Monetary Authority are currently the initial founding shareholders of PMHC and will retain a minority equity position in PMHC after the capitalization of PMHC by private investors. Other shareholders are expected to include almost all the commercial banks present in West Bank and Gaza (WBG) as well as some insurance companies. Canadian Mortgage and Housing Corporation (CMHC), a Canadian crown corporation and the largest mortgage financial institution in Canada with total assets of US$ 11 billion, will act as the PMHC’s technical partner.
Project Cost Including proposed IFC investment
In the first year, PMHC will be funded by shareholders'' equity (US$ 20 million), of which IFC''s equity investment will be up to US$ 4 million for a 20% shareholding, and by the World Bank''s IDA Loan (US$ 17 million). In the second year, PMHC will raise US$ 35 million, out of which IFC''s A loan will be up to US$ 25 million.
Location of project and Description of site
West Bank and Gaza
Description of Company and Purpose of Project
The project involves the capitalization of a new financial institution, Palestinian Mortgage and Housing Corporation (PMHC). PMHC is a joint project with the World Bank, which has committed to provide a US$ 17 million IDA loan for PMHC through the Palestinian National Authority. The project aims to create a commercially viable institution, which will develop the mortgage market in WBG and facilitate the flow of capital into this market. The objectives of PMHC are to refinance long term mortgage loans originated by primary mortgage lenders and to insure the mortgage loans against non-repayments by their borrowers.
Environmental Category and Issues
This is a category C project according to IFC''s environmental review procedure. No further environmental review is required.
| Date SPI sent to PIC | March 25, 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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