Project Name Middle East-Middle East Capital Group
Region Middle East
Sector Financial Services
Project No 007220
Projected Board Date November 14, 1995
Company Name Middle East Capital Group Limited
Technical Partner and/or Major Shareholders
The main sponsors of the project are BZW, the
investment banking arm of the Barclays Plc Group (U.K.), the Bin Mahfouz
Group of National Commercial Bank of Saudi Arabia, and the projected
Management Team.
Project Cost Including proposed IFC investment
US$30 million of which IFC's equity investment is
US$3 million for an equity interest of 10%.
Location of project and Description of site
Middle East
Description of Company and Purpose of Project
The project involves the establishment of the first
regional merchant bank in the Middle East. IFC has been requested to
make an equity investment of US$3 million for a 10% equity interest in
the share capital of Middle East Capital Group (MECG). MECG would carry
out a broad range of merchant banking activities and would focus
initially on Lebanon, Jordan, the West Bank, and Gaza. MECG would play
a critical developmental role in addressing the financial needs of the
private sector in the Middle East and in developing its capital markets.
Environmental Category and Issues
This is a category FI project according to IFC's
environmental classification. MECG will be required to implement an
environmental risk management system to ensure that projects financed
under relevant operations comply with local environmental regulations
and applicable World Bank Group guidelines and are consistent with World
Bank Group policy.
Date SPI sent to PIC October 27, 1995
For Additional Information contact: Corporate Relations Unit –
telephone: (202) 473-7711
facsimile: (202) 676-0365
Document Type: Press Release
Document Sources: World Bank
Subject: Assistance, Economic issues
Publication Date: 27/10/1995