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| Argan Infrastructure Fund |
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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 | 28573 |
| Company name | Argan Infrastructure Fund |
| Country | MENA Region |
| Sector | Collective Investment Vehicles |
| Environmental category | FI |
| Department | Private Equity and Investment Funds |
| Status | Pending Approval |
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| Date SPI disclosed | July 14, 2009 |
| Projected board date | September 25, 2009 |
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| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
| The proposal is to make an equity commitment of up to €8 million, not to exceed 20% of total commitments in the Argan Infrastructure Fund, a private equity fund which will make equity and equity-related investments in infrastructure projects located primarily in North Africa and West Africa (collectively, the “Region”), and opportunistically in other counties of Sub-Sahara Africa. The Fund will be managed by Infra Invest (the “Manager”), a subsidiary of Argan Invest (“Argan”), a fund management company based in Casablanca, Morocco. |
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| Project sponsor and major shareholders of project company |
| Infra Invest is a subsidiary of Argan Invest, which is owned by Finance.com, a diversified investment holding company which is a controlling shareholder of BMCE Bank, a Casablanca Stock Exchange-listed entity. |
| Total project cost and amount and nature of IFC's investment |
| The Fund has a committed capital target size of €150-200 million. The proposal is to make an IFC equity commitment of up to €8 million, not to exceed 20% of total commitments in the Argan Infrastructure Fund |
| Location of project and description of site |
| The Fund will target investments in North Africa and West Africa. The Manager has offices in Casablanca, Morocco, and affiliate relationships with entities in other target countries of the Fund. |
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| Anticipated development impact of the project |
| The Fund is expected to deliver strong development impact as its investments are dedicated to critical infrastructure projects in North Africa and IDA countries in Sub-Sahara Africa. |
| IFC's expected development contribution |
| (i) Improving fund quality – IFC’s presence will enhance the credibility of the Fund with both investors and potential investees. (ii) Catalytic role - IFC’s involvement with the Fund will help it attract other investors. (iii) Assist the Fund to broaden its geographic reach: IFC’s support will give more comfort to the Fund to pursue investment opportunities in Sub-Sahara Africa. (iv) Environmental and Social: The Fund will adopt IFC’s environmental and social guidelines. |
| Environmental and social issues - Category FI |
The Fund’s potential investment pipeline is specific to infrastructure projects.
The Manager will be required to screen investments against the IFC exclusion list, national laws and the IFC Performance Standards. The Manager has an E&S policy and procedures based partly on IFC guidelines. IFC's appraisal will focus on the Manager's S&E system and due diligence capacity. The Manager will be required to upgrade the Policy prior to commitment to include screening against IFC Performance Standards and demonstrate capacity to ensure appropriate S&E due diligence. |
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| For inquiries about the project, contact: |
Abdellatif NASSERDINE
Infra Invest, Director General
Tél: + 212 522 429 137
Fax: + 212 522 273 815
Email: a.nasserdine@bmcek.co.ma |
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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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