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Mercantile Bank Holdings Limited
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 29093
Company nameMercantile Bank Limited
Country
South Africa
Sector1Commercial Banking - General
Environmental categoryFI
Department
StatusActive
Date SPI disclosedApril 7, 2011
Projected board dateMay 9, 2011
Date revised SPI disclosedMay 25, 2011
Previous EventsInvested: March 26, 2012
Signed: June 29, 2011
Approved: June 10, 2011
  Overview     Sponsor/Cost/Location     Development Impact     Contacts     Attachments  

Project description
The project consists of a senior loan to Mercantile Bank Limited (“Mercantile” or the “Bank”), a midsized bank in South Africa which is mainly dedicated to SMEs / Mid Market clients. The Bank provides a full range of banking services to SMES, retail, selected corporate clients, and alliance banking clients. Mercantile also aims at building a portfolio of SMEs / Mid Market clients which are energy efficient/cleaner production/ and renewable energy related subprojects in South Africa. IFC senior loan will assist the Bank to grow its SME / Mid Market clients lending and develop a portfolio of energy efficient related businesses.

The project is expected to be the basis for a longer-term partnership between IFC and Mercantile, an institution that has the capacity and motivation to help achieve important development impact in South Africa, through providing access to finance to the SMEs / Mid Market clients and the previously disadvantaged people.

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