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| Amlak Egypt |
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| Summary of Proposed Investment |
| This Summary of Proposed Investment 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. |
| Project number | 26646 |
| Company name | Amlak Finance |
| Country | Egypt |
| Sector | Finance & Insurance |
| Environmental category | C |
| Department | Global Financial Markets Group |
| Status | Pending Signing |
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| Date SPI disclosed | January 25, 2008 |
| Projected board date | March 3, 2008 |
| Previous Events | Approved: October 7, 2008 |
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| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
This project involves an IFC equity investment for a minority stake in Amlak Finance and Real Estate Egypt (AFE or the company). AFE will be the first provider of Islamic Mortgage Products in Egypt. IFC has identified this transaction with Amlak UAE (the sponsor), a leading Mortgage Finance Company in the UAE.
IFC is considering Amlak Finance - UAE as a potential MENA regional champion and has been in discussions with Amlak Finance on their future regional expansion plan. Amlak Finance - UAE is seeing this project as a first step towards a long term partnership with IFC which may lead to a number of similar ventures in other parts of MENA. |
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| Project sponsor and major shareholders of project company |
| The project is sponsored by Amlak Finance - UAE, the leading and largest listed Islamic mortgage finance company in the region. Amlak UAE was established in 2000 as a subsidiary of Emaar Properties, a UAE top real estate developer, and has evolved into widely held publicly listed Islamic financial institution. Amlak Finance is currently 48 per cent owned by Emaar Properties and with the balance of the shares being actively traded on the DFM. Amlak is a market leader in the Islamic home finance sector in the UAE with a 35% market share. |
| Total project cost and amount and nature of IFC's investment |
| Under the proposed project, IFC will acquire a minority equity stake in Amlak Finance and Real Estate Egypt. |
| Location of project and description of site |
| The proposed investment will be in Cairo, Egypt. |
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| Anticipated development impact of the project |
The project is expected to have high development impact by helping develop broad-scale and sustainable mortgage lending in Egypt through providing support to a promising new specialized mortgage player. Specifically, the project is expected to have an impact in the following areas:
- promoting south-south investment and facilitate channeling of excess liquidity from UAE to lesser developed Egypt;
- providing access to a growing segment of the Egyptian population to new products such as Shariah Compliant Housing Finance; and
- deepening the local mortgage market through provision of mortgages to Emaar’s developments and AFE’s arrangement with 17 developers in Egypt. |
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| IFC's expected development contribution |
IFC has several roles and contributions in this Project. Although Amlak Finance -UAE has access to capital, it is looking to enhance its branding by successfully expanding regionally and into emerging markets. Amlak Finance UAE views IFC as a partner that can add value to its domestic and regional strategy as it engages with new business partners, co-investors, and regulatory authorities in these markets.
Additionally, IFC’s proposed equity in AFE will have a strong role in supporting a MENA regional partner to become the market leader in mortgage finance products regionally. Moreover, as equity partner, IFC is expected to bring its global standards of corporate governance and international best practices. |
| Environmental and social issues - Category C |
| This project involves IFC support for the business of mortgage finance and has been classified as a Category C project according to IFC’s Environmental and Social Review Procedure. No further review is required. The project is required to inform IFC in the event of any change in nature or scope of its contemplated business or operations. |
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| For inquiries about the project, contact: |
Lina Anani, Vice President – Corporate Communications
P.O.Box 2441
Dubai, UAE
Telephone: +971 4 367 8872
Fax: +971 4 367 8899
E-mail: Lanani@amlakfinance.com
Website: www.amlakfinance.com |
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| For inquiries and comments about IFC, contact: |
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster |
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