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| Summary of Project Information (SPI) |
| This Summary of Project Information 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. |
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| Project number | 24682 |
| Project name | EKI Bosnia |
| Country | Bosnia and Herzegovina |
| Sector | Finance & Insurance |
| Department | Global Financial Markets Group |
| Company name | Ekonomska Kreditna Institucija |
| Environmental category | FI-1 |
| Date SPI disclosed | February 6, 2006 |
| Projected board date | March 31, 2006 |
| Status | Active |
| Previous Events | Invested: October 25, 2006
Signed: July 27, 2006
Approved: June 14, 2006 |
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| Description of company and purpose of project |
| The project involves a €3 million ($3.6 mil equivalent) loan to Micro Credit Organization EKI (''EKI''), a non-regulated, non-bank micro credit organization based in Sarajevo, Bosnia and Herzegovina (BiH) operating on a commercial basis with strong independent Board of Directors. The purpose of the loan is to support EKI's microfinance lending operations through 10 branch offices and 24 subs –offices locates throughout all of BiH, mostly rural areas where agriculture is an important business sector. |
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| Project sponsor and major shareholders of project company |
| EKI’s founder, World Vision International (WVI), is an international Christian relief and development organization working to promote the well being of all people - especially children. WVI operates in 96 countries, globally. WVI microfinance programs have lent approximately $375 million to small entrepreneurs in 45 countries over the last 10 years. WVI has supported micro credit activates in Bosnia since February 1996, when it opened its first office in Zenica. Over the past four years WVI has opened seven additional micro credit branches: in Tuzla (February 1996), Doboj (February 1998), Sarajevo (March 1998), Bijelina (June 1999), Mostar (December 1999), Bugojno (June 2000) and Brcko (June 2001), Banja Luka (Janaury 2006) and Gradacac (January 2006). EKI has 24 satellite offices in Trebinje, Laktasi, Prnjavor, Derventa, Zvornik, Zivinice, Maglaj, Visegrad, Jajce, Bosanski Petrovac, Gračanica, Visko, Gradiška, Foca, Bihac, Arizona, Čapljina, Kalesija, Lukavac, Teslic, Srebrenik, Travnik, Bratunac and Vlasenica. |
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| Total project cost and proposed IFC investment |
| The project involves a €3 million ($3.6 million equivalent) loan. |
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| Location of project and description of site |
| The NGO has its headquarters in Sarajevo - Bosnia and Herzegovina |
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| Project Development Impact and IFC's Role |
The developmental impact of EKI is expected to be high and far reaching in terms of its economic support for productive micro enterprises and stimulus for employment generation. Specifically, IFC’s investment is expected to have a high development impact in the following key areas:
- Significant Contribution to Economic Development through IFC’s support of the strengthening of a microfinance company and the NGO’s provision of a more ample range of financial products that were previously not available to microentrepreneurs; and
- Significant Direct Contribution to Poverty Reduction - this project is expected to reach an estimated 4,500 new microentrepreneurs and increase employment and income generation for over 15,000 citizens, primarily in rural areas, during the tenor of the loan. |
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| Environmental and social issues - Category FI-1 |
This is a category FI Type 1 project according to IFC's environmental and social review procedure. EKI will be required to designate individuals to have responsibility for the environment and who will attend IFC's environmental management workshop or an approved equivalent, establish an environmental management system to ensure that activities financed under relevant operations are consistent with applicable BiH environmental, occupational health and safety regulations and IFC's Microfinance Exclusion List, and submit to IFC an environmental management plan and annual environmental performance reports.
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| To contact the project company, please write to: |
Ms. Sadina Bina
General Director
EKI
Zvornicka 9 71000 Sarajevo - Bosnia and Herzegovina
(fax: +387 35 300 470) |
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