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| Summary of Project Information (SPI) |
| This Summary of Project Information is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. |
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| Project number | 24013 |
| Project name | Tameer Microfinance Bank |
| Country | Pakistan |
| Sector | Finance & Insurance |
| Department | Global Financial Markets Group |
| Company name | Tameer Microfinance Bank Ltd |
| Environmental category | FI |
| Date SPI disclosed | April 29, 2005 |
| Projected board date | June 10, 2005 |
| Status | Active |
| Previous Events | Invested: December 29, 2005
Signed: November 16, 2005
Approved: September 14, 2005 |
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| Description of company and purpose of project |
| The project is to establish a new microfinance bank in Pakistan, Tameer Microfinance Bank (Tameer Bank or the Bank), with the involvement of Cooperative Housing Foundation (CHF), a U.S based NGO, and local sponsors. The target market would be urban self employed small businesses with combined aggregate annual household incomes of Rs 18,000 ($300 equivalent) and above. Tameer Bank is seeking a license to operate from the State Bank of Pakistan on a nationwide level. Initially, the bank would focus on the urban markets. |
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| Project sponsor and major shareholders of project company |
The main sponsors of the project will be Emerging Markets Consulting (Pvt) Limited (EMCPL), an investment and management services company. The initial capital of the bank will be set at $10 million and IFC expects to participate in 10% of the equity and to provide a partial local currency guarantee or loan of $3.7 million equivalent as the bank grows. EMCPL will take a 60% stake in Tameer Bank. Two local shareholders, who are businessmen, propose to subscribe to 30% of the equity.
EMPCL is to be owned 25% by CHF (Cooperative Housing Foundation), a U.S based NGO,and the remainder will be owned by a number of Pakistani shareholders, most of whom are experienced bankers. CHF has worked in nearly 100 countries worldwide. It is a pioneer in the small business finance arena and, for the past twenty years, through CHF International, it has been providing a range of array of financial services to economically disadvantaged groups.. |
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| Total project cost and proposed IFC investment |
| IFC’s equity participation will be up to 10% of the bank’s capital. The partial local currency guarantee or loan would be for up to $3.7 million. |
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| Location of project and description of site |
| The Bank is planning on beginning operations in Karachi and Lahore, although the business plan expects an extensive network of nationwide branches over a five year period. The Bank will be headquartered in Karachi. |
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| Project Development Impact and IFC's Role |
This project is expected to have high development impact:
- It will target a large, underserved low income population in Pakistan’s urban areas. Over 5 years, the bank intends to have strong outreach to over half a million clients.
- By serving the financing needs of micro and small business clients (who have access mainly to informal markets), it will assist by improving the competitiveness of these businesses and encourage more private sector led growth in Pakistan.
- The project will also help disseminate best practices for commercial microfinance lending in the sector.
- It will introduce a new financial product for IFC to offer local currency guarantees for microfinance institutions in Pakistan, which would help allow local MFIs to access domestic funding and facilitate overseas lending for this sector. |
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| Environmental and social issues - Category FI |
This is a Financial Intermediary (FI) Type 1 microfinance project according to IFC's environmental review procedure. Tameer Bank will be required to ensure that its operations are consistent with host country requirements and IFC’s Micro finance Exclusion List. IFC will assess the Bank’s capability to carry out environmental reviews. In addition, the Bank will be required to submit an annual environmental performance report.
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| To contact the project company, please write to: |
Ms Momina Aijazuddin (maijazuddin@ifc.org)
2121 Pennsylvania Avenue, Washington DC, 20433, USA |
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