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| Smartchoice |
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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 | 27037 |
| Company name | SmartChoice Technologies (P) Limited |
| Country | Nepal |
| Sector | Finance & Insurance |
| Environmental category | C |
| Department | Global Financial Markets Group |
| Status | Pend FAP |
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| Date SPI disclosed | August 27, 2008 |
| Projected board date | September 30, 2008 |
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| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
| The project entails a financial investment in Smartchoice Technologies (P) Limited, a provider of IT services to the financial sector in Nepal. The project will help augmenting the company’s capital base to meet its planned growth including development of Disaster Recovery Centre, increased outreach of services and potential investments in new ventures. The company has an established customer base in the country in the provision of shared ATM and card services in the country. |
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| Project sponsor and major shareholders of project company |
| The company is led by Mr. Rabindra Malla, a local entrepreneur who is also a large shareholder of the company. The company is currently privately held. |
| Total project cost and amount and nature of IFC's investment |
| The proposed IFC investment entails a financial investment for its own account to help the company meet its growth plans in the medium term. |
| Location of project and description of site |
| The company is headquartered in Kathmandu, Nepal, and provides services across many areas of the country. |
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| Anticipated development impact of the project |
- Improve the efficiency of payment services/banking services in Nepal;
- Improve the cost efficiency of commercial banks in Nepal by enabling a provision of low cost financial services;
- Support the growth of the private sector in the financial sector in Nepal;
- Confidence building measure in an economy returning to peace. |
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| IFC's expected development contribution |
- Support development of Disaster Recovery Centre and hence improve sustainability of the project;
- Enhance financial inclusion for low income population by allowing the company to expand its services;
- Technical assistance opportunities to enhance the company capabilities with regards governance mechanisms as well as improving availability of advanced and efficient payment systems in the country. |
| Environmental and social issues - Category C |
| This project entails IFC investment in a payment and transaction based solutions company and has been classified as a Category C project according to IFC’s Environmental and Social Review Procedure. No further review is required. The project is required to inform IFC in the event of any change in the nature or scope of its present business or operations. |
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| For inquiries about the project, contact: |
Mr. Vivek S Rana, CEO
Smartchoice Technologies (P) Limited
P.O.Box 13162, Baluwatar, Kathmandu, Nepal
Tel: +977-1-4414166
Website: www.sct.com.np |
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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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