Riyadh, Saudi Arabia, July 19, 2010
—IFC, a member of the World Bank Group, today signed a $20 million investment in Saudi Orix Leasing Company (SOLC) to help it expand sustainable energy financing and increase access to finance for smaller businesses in Saudi Arabia.
IFC’s loan will help SOLC, the largest private leasing company in Saudi Arabia, increase the number of leases it provides to small and medium enterprises that are investing in energy efficient, renewable energy and cleaner production projects
IFC will also provide advisory services to help SOLC increase its sustainable energy finance portfolio in Saudi Arabia. IFC has made two previous investments in SOLC, in 2000 and 2006, of over $5 million and $17 million, respectively.
Waheedullah Shah, SOLC’s Assistant General Manager of Marketing, said, “IFC’s investment will provide us with an opportunity to lead Saudi Arabia financial institutions in providing sustainable financing opportunities that will help cut carbon emissions, while also supporting the small businesses that drive job creation.”
Walid Almurshed, IFC Senior Country Officer for Saudi Arabia, said, “Through this investment, IFC demonstrates its commitment to expanding sustainable energy finance in the region to address the effects of climate change.”
The investment in SOLC is part of IFC’s strategy in Saudi Arabia to help small and medium enterprises access finance through alternate financial instruments, such as insurance and mortgage finance.
IFC has also worked with financial institutions in Saudi Arabia to strengthen their risk management systems and corporate governance practices.IFC also works in Saudi Arabia and other Gulf Cooperation Council countries to encourage cross border investments, which totaled almost half of IFC’s $1.5 billion worth of regional commitments in fiscal year 2010.
Leasing plays an important role in promoting a strong and sustainable private sector in emerging markets, helping micro, small, and medium enterprises gain access to finance Leasing can also be an effective channel in tackling the critical global challenges of climate change and the food crisis by supporting investments in energy efficiency, renewable energy, cleaner production, and agribusiness equipment.
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing capital for private enterprise, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $14.5 billion in fiscal 2009, helping channel capital into developing countries during the financial crisis. For more information, visit
www.ifc.org
.
