PROJECT

Projects

Summary of Proposed Investment

Project Number

9626

Company Name

NATIONAL BANK OF COMMERCE LIMITED

Date SPI Disclosed

Jun 9, 1999

Country

Tanzania

Industry

Financial Markets

Status

Active

Sector

Commercial Banking - General

Department

Global Industry, Financial Markets

Environmental Category

FI

Previous Events

Approved : Nov 18, 1999
Signed : Sep 29, 2000
Invested : Apr 23, 2001

Project Description

Summary Of Project Information (SPI)

Project NameTanzania - National Bank of Commerce
     
RegionSub-Saharan Africa

Sector
Project No009626
Projected Board DateSeptember 1, 1999
Company NameNational Bank of Commerce
Technical Partner and/or Major Shareholders

Amalgamated Bank of South Africa (ABSA) is Government of Tanzania''s preferred bidder to become a majority shareholder and technical partner of NBC. ABSA is one of South Africa''s largest banking and financial services groups providing a full range of retail and corporate banking, insurance, financial and property services through extensive local and international networks with over one hundred years of bank experience.

Project Cost Including proposed IFC investment

Up to US$50 million

Location of project and Description of site

Tanzania

Description of Company and Purpose of Project

The project involves the privatization of the National Bank of Commerce, the largest financial institution in Tanzania. NBC''s privatization is the largest bank privatization in Sub-Saharan Africa and will be IFC''s largest bank privatization project in the region to date. ABSA has invited IFC to participate as a strategic investor. In addition to its equity participation, IFC has also been requested to consider providing a loan to NBC for financing SMEs.

Environmental Category and Issues

This is a Financial Intermediary (F1) Type 1/Type 2 project according to IFC''s environmental and social review procedure. NBC will be required to undertake environmental and social review of relevant operations (project finance, corporate finance, leasing) to ensure compliance with host country requirements. For each subproject financed with IFC funds through the credit line, NBC will be required to undertake a review of each subproject to ensure compliance with host country requirements, IFC environmental and social safeguard policies, and if applicable, World Bank Group environmental, health and safety guidelines. NBC must obtain IFC clearance prior to making any investment with IFC funds in any Category A project. In addition, NBC will be required to submit an annual environmental performance report.

The is from the InfoShop.

Host country location of environmental documentsTanzania
Date SPI sent to InfoShop June 9, 1999
      “
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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