| Project description |
Established in 1997, Association Al Amana pour la Promotion des Microentreprises (Al Amana) is the leading microfinance institution (MFI) in Morocco. Al Amana provides micro credit to low income groups and individuals in various sectors including commerce, agriculture. It has demonstrated a business model that works, an ability to scale up, and good management. However, with a high leverage, Al Amana’s future growth is constrained by its ability to raise further debt.
Through this project, IFC seeks to help Al Amana increase its capital base by providing a subordinated loan. IFC will also support the funding needs of Al Amana, by providing a partial credit guarantee (PCG) to help Al Amana raise senior debt. |
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| Project sponsor and major shareholders of project company |
| The project sponsor is Al Amana. Al Amana is an association and its capital is held in trust by its twenty permanent honorary and active members. |
| Total project cost and amount and nature of IFC's investment |
IFC’s proposed investment amounts to up MAD 170 million ($20 million) financing broken down in:
- subordinated loan/guarantee of up to MAD 85 million ($10 million); and
- PCG of senior debt of up to MAD 85 million ($10 million).
In parallel, IFC will also work with the World Bank, CGAP and the donor community on the on-going efforts to introduce a conducive environment for the transformation of MFIs into financial institutions or banks. This will be done through an advisory services program, closely coordinated between IFC Financial Markets and PEP-MENA. |
| Location of project and description of site |
| Al Amana is based in Rabat, Morocco and operates through a national network of about 352 field offices and 65 agencies spread throughout urban and rural areas of Morocco. |
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| Anticipated development impact of the project |
The proposed investment is expected to make high impact contribution by providing access to finance to micro and small enterprises, an area of key strategic priority to IFC. As IFC assists Al Amana with sourcing additional funding, this project would serve those segments of the population that lack access to credit, hence seeking to:
- reduce income disparities in the country, and
- contribute to job creation in underserved regions. |
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| IFC's expected development contribution |
| Through its involvement in Al Amana, IFC will play a critical role in the promotion of best practice in the leading MFI in Morocco. In addition, IFC will play an important catalytic role in assisting Al Amana to access financing through the growth of its capital base, while promoting the Association’s long term sustainability as it seeks to emerge as a leading financial institution in Morocco. |
| 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;
- demonstrate commitment and resources to implementing the procedure, and take action to remedy any gaps in implementation on an ongoing basis;
- 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. Fouad Abdelmouni, General Manager
Association Al Amana
28, Rue Oum Errabia, Agdal
Rabat, Morocco
Telephone: +212 37 77 01 41
Fax: +212 37 68 67 12 |
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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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