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Summary of Project Information (SPI) |
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| Project number | 9801 |
| Project name | BRAC Bank |
| Country | Bangladesh |
| Sector | Finance & Insurance |
| Department | Global Financial Markets Group |
| Company name | BRAC Bank |
| Environmental category | B |
| Date disclosed | December 10, 1999 |
| Status | Active |
| Previous Events | Invested: September 1, 2004
Signed: May 8, 2004
Approved: June 28, 2001 |
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Summary Of Project Information (SPI)
| Project Name | Bangladesh - BRAC Bank |
RegionAsia and Pacific
Sector
Project No009801
Projected Board DateJanuary 27, 1999
Company NameBRAC Bank
Technical Partner and/or Major Shareholders
The project is sponsored by BRAC, a well-established and prominent NGO (non governmental organization) with a large presence in the rural and urban areas of Bangladesh. The current activities of BRAC are particularly focused in three areas: education (1.2 million students), health care (14 million patients), and micro-finance. BRAC already has extensive experience in the micro-credit market with 2.4 million customers, and a substantial portfolio of approximately US$270 million of performing loan assets. BRAC's experience dates back over 25 years during which it has achieved excellence in most of its targeted activities.
Project Cost Including proposed IFC investment
BRAC Bank will be capitalized at around US$10 million, and BRAC is expecting to hold a 60% stake in the new bank, with a 20% stake held by IFC, leaving the remaining 20% for one or more potential Technical Partners, which are being sought with IFC's assistance.
Location of project and Description of site
Bangladesh.
Description of Company and Purpose of Project
The project involves the establishment of a commercial bank, BRAC Bank, in Bangladesh. The new bank will focus on niche credit markets: (i) small enterprises defined as those enterprises between the microentrepreneurs and more formal medium-sized businesses; (ii) NGOs and other companies, operating in the rural settings, whose financial needs are not met by the formal financial sector; and (iii) a large untapped domestic and international remittance market, which can be serviced efficiently and effectively by leveraging BRAC's established network of over 800 offices across Bangladesh. BRAC Bank is expected to be a professionally managed bank with adequate capitalization, diverse shareholding, and best practice corporate governance.
Environmental Category and Issues
This is an FI Type 1 project. The bank will be required to undertake an environmental review of each subproject. IFC will assess the bank's capability to carry out environmental reviews.
| Date SPI sent to InfoShop | December 10, 1999 |
“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”
For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 974-4384 |
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| Environmental documents for this project are available at http://www.ifc.org/projects and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html). |
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