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| Jaida S.A. |
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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 | 25175 |
| Company name | Jaida S.A. |
| Country | Morocco |
| Sector | Finance & Insurance |
| Environmental category | FI |
| Department | Global Financial Markets Group |
| Status | Pending Disbursement |
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| Date SPI disclosed | May 11, 2007 |
| Projected board date | June 11, 2007 |
| Previous Events | Signed: December 26, 2007
Approved: June 15, 2007 |
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| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
| The proposed project consists of participating in the funding of Jaida, a debt fund for the Moroccan microfinance sector, with a mezzanine investment in the form of subordinated debt. Jaida is incorporated as a non-bank financial institution and will provide debt funding to microfinance institutions in Morocco. Jaida is expected to start operations in 2007. |
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| Project sponsor and major shareholders of project company |
The sponsors of Jaida and their respective initial shareholdings in the company are as follows:
- Caisse de Dépôt et de Gestion of Morocco (45%) ;
- Caisse des Dépôts et Consignations (20%);
- Agence Française de Développement (10%) of France; and
- Kreditanstalt für Wiederaufbau of Germany (25%). |
| Total project cost and amount and nature of IFC's investment |
| IFC’s investment will be for up to MAD 85 million (approximately $10 million) in the form of mezzanine financing, which will be structured as Tier 2 capital, with an eight-year maturity and a three-year grace period. |
| Location of project and description of site |
| Jaida will be located in Rabat, Morocco. |
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| Anticipated development impact of the project |
| The project is expected to make a significant contribution to economic development by fostering economic growth and employment. Moreover, the project will achieve high impact by promoting commercially sound microfinance practices. |
| IFC's expected development contribution |
| By providing mezzanine financing to Jaida, IFC would be acting as a catalyst for raising senior debt from other investors and contributing to the sustainable growth of microfinance institutions by bringing its unique experience in terms of corporate governance, operational best practice, global network and environmental and social standards. |
| Environmental and social issues - Category FI |
This project involves IFC support for the business of microfinance, and has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure. Considering the nature of activities supported, the project will be required to:
- Develop a procedure relevant to its business process, prior to disbursement, that is satisfactory to IFC, and that ensures that all its investments are screened and processed to avoid supporting activities on the IFC Microfinance exclusion list;
- Identify qualified persons to manage and implement the procedure;
- Commit to establish a similar screening process to avoid supporting activities on the IFC Microfinance Exclusion List in MFIs in which it invests;
- Demonstrate commitment and resources to implementing the procedure, and take action to remedy any gaps in implementation on an ongoing basis; and
- Submit a periodic report to IFC as per a format to be provided by IFC providing a summary of the annual social and environmental performance of its investee institutions. |
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| For inquiries about the project, contact: |
Mr. Abdesselam Aboudrar, Chairman of Jaida
Place Moulay El Hassan
Immeuble Dalil, BP 408
Rabat, Morocco
Telephone: 212 37 76 55 20
Fax: 212 37 76 38 49 |
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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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