|
|  |
| Sampath Bank |
|
| 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 | 25258 |
| Company name | Sampath Bank Limited |
| Country | Sri Lanka |
| Sector | Finance & Insurance |
| Environmental category | FI |
| Department | Global Financial Markets Group |
| Status | Dropped |
|
| Date SPI disclosed | November 30, 2007 |
| Projected board date | January 2, 2008 |
| Previous Events | Approved: May 27, 2008 |
|
| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
| The project entails a financial investment in Sampath Bank, a large private sector bank in Sri Lanka. The project will help augmenting the Bank’s capital base to meet its planned asset growth especially in the areas of SME and retail financing products. IFC will also provide a facility under the Global Trade Financing Programme to help the Bank increase its trade finance business. IFC will also work with the Bank to help improve its governance and operations related practices through its Advisory Services team. |
|
| Project sponsor and major shareholders of project company |
| The bank has no identifiable sponsor and the shareholding is diversely held among large local corporates, some institutional investors, the Bank’s ESOP Trusts and EPF’s and a large number of retail investors. The ownership of SB is currently widely held with approximately 18,000 shareholders. |
| Total project cost and amount and nature of IFC's investment |
| The proposed IFC investment entails a financial investment for its own account to help the company meet its growth plans in the medium term. The Global Trade Finance Programme is in the nature of guarantees provided to enhance the Bank’s trade business. |
| Location of project and description of site |
| The Bank is headquartered in Colombo, Sri Lanka and provides services across Sri Lanka through a network of over 95 branches. |
|
| Anticipated development impact of the project |
The development impact of this project will be to:
- Support access to finance to SMEs and expand capacity of retail financing in the country
- Support the growth of private sector in the banking industry in Sri Lanka
- Help improve the quality of banking services through introduction of best practices in governance and operations. |
 |
| IFC's expected development contribution |
IFC’s expected development contribution is to:
- Strengthen the Bank’s financial position and hence allow room for growth
- Support best practices in the Bank
- Support the Bank’s regional expansion plans |
| Environmental and social issues - Category FI |
This project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure.
During appraisal, IFC analyzed Sampath Bank's portfolio for types of transactions, size, tenor and industry sectors and determined the Applicable Performance Requirements based on an analysis of the potential social and environmental risks associated with the portfolio and considering IFC’s investment. The Applicable Performance Requirements are:
- The IFC FI Exclusion List,
- The applicable Sri Lankan social and environmental laws and regulations,
- IFC also reviewed the Bank’s existing social & environmental risk management procedures and capacity to implement the same.
Based on the Applicable Performance Requirements and procedure and capacity review, the Bank will be required to:
Upgrade its existing procedures to a formal Social & Environmental Management System (SEMS) prior to disbursement, to the satisfaction of IFC
- Identify responsible, qualified persons to manage and implement the SEMS,
- Commit to implement the SEMS, to ensure that its investments/activities are in compliance with the Applicable Performance Requirements,
Submit a periodic report to IFC as per a format to be provided by IFC. |
|
| For inquiries about the project, contact: |
Mr Anil Amarasuriya
Managing Director
Sampath Bank Limited
No.110, Sir James Peiris Mawatha
Colombo 02, Sri Lanka
Ph: +94-11-2300260
Website: www.sampath.lk |
|
| 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 |
|
|
|
|