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| Developing Access to Microfinance in the Arab Nations (DAMAN) Lebanon |
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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 | 25493 |
| Company name | DAMAN |
| Country | Lebanon |
| Sector | Finance & Insurance |
| Environmental category | FI |
| Department | Global Financial Markets Group |
| Status | Pend FAP |
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| Date SPI disclosed | July 10, 2007 |
| Projected board date | September 28, 2007 |
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| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
| The project aims to scale up microfinance outreach in Lebanon through the service company model. IFC, in line with its strategy to commercialize the delivery of microfinance in the MENA region, is partnering with a group of credible technical providers from the MENA region to create Delivering Access to Microfinance in the Arab Nations (DAMAN), a new service company. The objective is to have an effective, sustainable and replicable delivery vehicle for microfinance, first in Lebanon and then the broader MENA region. The business model aligns risk, return, and responsibilities of all stakeholders (including a partner commercial bank and other equity partners). |
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| Project sponsor and major shareholders of project company |
DAMAN’s key sponsors are Mr. Nadeem Hussain -the President and CEO of Tameer Bank Pakistan- and Development Innovations Group (DIG), who will together own 60% of DAMAN through a joint venture holding company. DIG is a private consulting firm incorporated in Lebanon and the U.S., with headquarters in Bethesda, Maryland, U.S.A. Its principals are specialists in designing, managing and implementing development finance programs globally. Mr. Nadeem Hussain has over 28 years experience in banking and is the founder/CEO of Tameer Microfinance Bank in Pakistan.
The shareholders also include individual investors namely Mr. Zahid Razzak Lakhani and Mr. Noor Mohammad Mevavalla. Mr. Lakhani, who is expected to take 10% equity stake, is the owner and CEO of Century 21 group. Century 21 is a vertically integrated producer of knit apparel for the US and European markets and is considered one of Pakistan’s major exporters of denim and sportswear. Mr. Mevavallah, who owns Eastern Garments, a textile exporting house, is expected to own 10% in DAMAN. BankMed, a Lebanese commercial bank, is expected to take a 10% equity stake in DAMAN. |
| Total project cost and amount and nature of IFC's investment |
DAMAN is expected to be $1.5 million equivalent in capital. The proposed IFC participation includes:
- $150,000 in the form of an equity investment, and
- up to $750,000 in the form of a Risk Participation Facility |
| Location of project and description of site |
| The company will be headquartered in Beirut, Lebanon, with the ultimate goal of covering all the areas in Lebanon. In the project's initial stages, the company will start delivering its services in central and southern areas of Lebanon. |
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| Anticipated development impact of the project |
| This project is expected to have a high development impact in the development of the microfinance sector in Lebanon by introducing an innovative delivery vehicle in the MENA region, thereby creating a demonstration effect in the sector and provide access to finance for micro and small businesses who are suffering from lack of credit. These benefits are particularly salient in the context of post-conflict reconstruction efforts. |
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| IFC's expected development contribution |
| Through its investment in DAMAN, IFC would contribute to the growth of commercially viable microfinance operations in Lebanon. |
| 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 Microfinance Exclusion List.
- Identify qualified persons to manage and implement the procedure.
- Demonstrate commitment and resources to implementing the procedure.
- Submit a periodic report to IFC as per a format to be provided by IFC. |
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| For inquiries about the project, contact: |
Mr. Nadeem Hussain, President/CEO, Tameer Microfinance Bank Limited
Tameer Micro Finance Bank Ltd., 15-A, Block 7&8, Central Commercial Area
Cooperative Housing Society, Karachi, Pakistan
Telephone: 9221 4325576
E-mail: Nadeem.hussain@tameerbank.com
Dr. Mayada Baydas, Senior Vice President, Managing Director
Development Innovations Group
Beirut, Lebanon
Telephone: 961-1-862221
Mobile: 961-3-890519
E-mail addresses: mbaydas@cyberia.net.lb mbaydas@developinnovations.com
Contacts in IFC:
Mr. Deepak Khanna, Principal Investment Officer
E-mail: dkhanna@ifc.org
Ms. Momina Aijazuddin, Sr. Investment Officer
E-mail: maijazuddin@ifc.org |
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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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