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IFC Projects Database

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South Africa Banks Infrastructure Facility-Absa
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 28061
Company nameAbsa Bank Ltd
Country
South Africa (IDA)
Sector1Commercial Banking - General
Environmental categoryFI
Department
StatusCompleted
Date SPI disclosedMay 18, 2009
Projected board dateJune 18, 2009
Previous EventsSigned: September 3, 2009
Approved: June 18, 2009
  Overview     Sponsor/Cost/Location     Development Impact     Contacts     Attachments  

Project description
The Project is for IFC to provide a credit line dedicated to infrastructure financing of up to $250 million to Absa Bank Limited (“Absa”), a member of Absa Group Limited, headquartered in South Africa as part of IFC’s South African Bank Infrastructure Facility (“SABIF”). The Project would be critical to helping Absa bring selected infrastructure projects in sub-Saharan Africa to financial closure.

Absa Group Limited is one of South Africa’s largest financial services groups, with total assets of over $80 billion and a Long Term national IDR of “AAA” and a Long Term international IDR of “A” from Fitch Ratings. Absa Group Limited reported a Capital Adequacy Ratio of 14.1% as of 12/31/2008.

The SABIF is part of IFC’s multi-faceted global financial crisis response dedicated to infrastructure. It is a funded investment program comprising a dedicated infrastructure credit line of up to $500 million to be lent to selected South African banks who will then on-lend these funds to projects that they are financing. The focus of the SABIF is on infrastructure projects in IDA countries in sub-Saharan Africa.

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