IFC Support of Morocco’s First Upper Tier II Capital Subordinated Loan to Help BMCE Expand into Sub-Saharan Africa
In Washington D.C:
Lotte Pang
Phone: +1 202 758 4290
E-mail: lpang@ifc.org
In Cairo:
Riham Mustafa
Phone: +202 24 619 140
Fax: +202
24 619 145
E-mail: rmustafa@ifc.org
Casablanca, May 19, 2008—IFC,
a member of the World Bank Group, announced on May 12 that it will provide
Morocco’s first subordinated loan qualifying as Upper Tier II capital.
IFC’s €70 million investment in Banque Marocaine du Commerce Exterieur,
the second-largest private sector commercial bank in Morocco, will help
finance the bank’s international expansion, including into Sub-Saharan
Africa.
The investment will be used partly to
fund the recent acquisition of a 35 percent shareholding in African Financial
Holding, the holding company of the Bank of Africa network. IFC will also
assist BMCE in implementing a social and environmental management system.
Othman Benjelloun, Chairman of BMCE,
said, “This partnership with IFC is key to the success of our plans to
expand internationally. IFC’s presence and local knowledge in Africa will
add value to our future operations there. Working with IFC, we aim to be
among the first banking groups in the region to implement social and environmental
standards in compliance with international best practice.”
Jyrki Koskelo, IFC Vice President for
Africa, Global Financial Markets, and Funds, said, “BMCE’s investment
in the Bank of Africa network will help transfer knowledge and expertise
to Sub-Saharan Africa. By partnering with BMCE, we can contribute significantly
to the establishment of a leading, regional financial services group.”
In the Middle East and North Africa,
IFC is implementing a strategy to develop partnerships with strong regional
banks that have the capacity to expand and diversify from their local markets
into developing markets, both within the region and beyond.
About IFC
IFC, a member of the World Bank Group,
fosters sustainable economic growth in developing countries by financing
private sector investment, mobilizing private capital in local and international
financial markets, and providing advisory and risk mitigation services
to businesses and governments. IFC's vision is that people should have
the opportunity to escape poverty and improve their lives. In FY07, IFC
committed $8.2 billion and mobilized an additional $3.9 billion through
syndications and structured finance for 299 investments in 69 developing
countries. IFC also provided advisory services in 97 countries. For more
information, visit www.ifc.org.
About Banque Marocaine du Commerce
Exterieur
BMCE is the second-largest private sector
commercial bank in Morocco, with a consolidated asset base of about $11.8
billion as of June 2007. The bank had 340 branches and around 3,500 employees
as of June 2007. In the past, BMCE focused mainly on large corporate financing,
with a leading position in trade finance. In 2003, the bank initiated
a new strategy to develop its business in Morocco and abroad.
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