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Company will provide much-needed finance to small and medium-enterprises
Washington D.C., November 8, 2001
—The International Finance Corporation, the private sector arm of the World Bank, has signed an agreement to invest US$700,000 in equity capital to support the establishment of Arab Leasing Corporation, an Algiers-based company that will provide lease finance to small and medium enterprises (SMEs).
The project represents a major step in the development of the leasing industry in the country and supports Algeria's economic diversification by financing economic activities in non-oil related sectors.
Key investors in the project include Arab Banking Corporation of Algeria (ABCA), one of the first private banks to be established in Algeria in 1998 with the support of IFC, and The Arab Investment Company, a Riyadh-based regional investment company. In addition to IFC, the remainder of the company’s share capital will be held by Caisse Nationale d’Epargne et de Prévoyance and private companies in Algeria.
“The investment in Arab Leasing Corporation represents an important step in the establishment of lease finance as a vehicle for SMEs growth in Algeria,” said Mr. Sami Haddad, IFC’s Director for Middle East and North Africa. “The project will have the added benefit of expanding and developing Algerian financial markets, especially through non-bank financial institutions,” said Mr. Haddad, adding that IFC remains committed to supporting private sector development in Algeria.
In addition to Arab Leasing Corporation, IFC has invested in other lease finance projects globally, and in the Middle and North Africa, including leasing companies in Egypt, Lebanon, Oman, Tunisia, and Saudi Arabia.
IFC's mission is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people's lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, and provides technical assistance and advice to governments and businesses. Since its founding in 1956, IFC has committed more than $31 billion of its own funds and arranged $20 billion in syndications for 2,636 companies in 140 developing countries. IFC's committed portfolio at the end of FY01 was $14.3 billion.
