Fuba PC

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	26716
Company name	Fuba Printed Circuits Tunisie S.A.
Country	Tunisia
Sector	Industrial & Consumer Products
Environmental category	B
Department	Global Manufacturing & Services
Status	Pending Disbursement

Date SPI disclosed	May 13, 2008
Projected board date	June 13, 2008
Previous Events	Signed: June 26, 2008 Approved: June 25, 2008

View Environmental & Social Review Summary (ESRS), click here

Overview

Sponsor/Cost/Location

Development Impact

Contacts

Attachments

Project description

The proposed IFC investment in Fuba Printed Circuits Tunisie S.A. (the company or Fuba), will contribute to the growth and development of an export-oriented Tunisian high-technology industrial company, which is fully aligned with the World Bank Group-supported objectives of improving competitiveness and creating employment opportunities for university graduates. Fuba is active in the electronics sector and aims at increasing the technological content of the products it manufactures. Fuba produces Printed Circuit Board (PCB). The PCB is the principal subassembly in virtually all electronic products, serving as an interconnection and circuit layout platform for component and modules.
The proposed IFC equity investment of up to 19 percent of the Fuba’s capital will support the company’s growth.

Anticipated development impact of the project

The project will support a medium size company set up a platform to undertake future expansion, thereby improving its competitiveness in the export market and benefiting the local economy by protecting and increasing jobs, tax revenues and exports earnings.

In addition, the Group has aspirations to expand internationally by developing manufacturing capabilities in other low cost countries (South-South investments).

IFC's expected development contribution

Through this project, IFC will support a leading Tunisian group in its strategy to rationalize, modernize and expand its operations. IFC will offer strategic advice and assist in an eventual public listing. IFC’s equity participation is considered crucial to support Fuba in its expansion by providing the necessary funding and global industry expertise. IFC will support the company in improving its environmental and social practices while ensuring compliance with IFC performance standard.

Private sector development:

Fuba aims to work with IFC to improve financial and operational reporting systems, and to adopt international best practices for environment as well as transparency and corporate governance. Transformation of a family-owned group to a more transparent and professionally managed company is expected to ensure long-term sustainability, encourage best practices across the industry and contribute to private sector development in Tunisia.

Support to South-South investment:

IFC’s experience in countries of interest (e.g. India), its financial capabilities (debt and equity) and its focus on South-South transactions are uniquely suited to the Group’s needs.

Environmental and social issues - Category B

The key social and environmental issues in this industry are social and environmental management, management of labor relations and workplace conditions, management of emissions to air and water, and solid and hazardous material management. Potential adverse effects arising from these issues are limited in scope, largely reversible and may readily be mitigated through the use of available control technologies. This is therefore an environmental Category B project.

IFC PROJECTS