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WASHINGTON, D.C., June 22, 2005
— The International Finance Corporation, the private sector arm of the World Bank Group, will provide a long-term credit line of $10 million to Taageer Finance Company, a private sector leasing company engaged in financing small and medium sized enterprises and retail customers in Oman.
At the signing ceremony, Sami Haddad, IFC’s director for the Middle East and North Africa, stated, “Viable financial institutions are crucial to sustained economic growth. This facility is a key part of IFC’s ongoing effort to strengthen Oman’s financial sector. By helping increase the availability of credit, IFC’s financing will help develop the country’s emerging small and medium enterprise sector.” He added, “As the private sector in Oman expands, this sector will become an important engine for job creation.”
Mohammad Al Barwani, chairman of Taageer Finance, said, “IFC’s loan will give our company access to longer-term funding than is not available from local sources, and it will help us to meet the increasing demand for leases from SME clients.” He added, “This financing will enhance investors’ confidence in Taager Finance, particularly in view of our forthcoming IPO.”
Taageer is the newest entrant in the Omani leasing market. it was established in February 2001 as a nonbanking finance company with a license to such offer products as financing and operating leases, corporate and retail loans, factoring, and consumer loans. Currently it has a 10 percent market share. For the financial year ending December 31, 2004, it had total assets of $ 45.8 million, net lease assets of $ 43 million, and net income of $ 1.4 million.
The mission of IFC (
www.ifc.org)
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, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956 through FY04, IFC has committed more than $44 billion of its own funds and arranged $23 billion in syndications for 3,143 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY04 was $17.9 billion for its own account and $5.5 billion held for participants in loan syndications.
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