Ramallah – Ma’an – The International Finance Corporation (IFC) and the European Bank for Reconstruction and Development (EBRD) announced a strategic alliance between them to invest 8.92% of the shares of Bank of Palestine. This investment is a strategic direction taken by the two international development finance institutions, with the aim of continuing to strengthen the capital base of Bank of Palestine, in support of its role in economic development and recovery efforts, including reconstruction in Palestine, in addition to the bank’s direction towards regional expansion in the Gulf Cooperation Council countries, North Africa and the Eastern Mediterranean.
Investment agreements were signed between the International Finance Corporation (IFC), the European Bank for Reconstruction and Development (EBRD) and the Bank of Palestine. Under these agreements, the IFC will invest 5% of the Bank of Palestine’s shares, while the European Bank for Reconstruction and Development will invest approximately 3.92% of the Ba
nk’s shares, through a private issue of shares.
In addition to strengthening the Bank’s capital, these agreements will contribute to deepening the partnership between the International Development Finance Institutions and the Bank of Palestine, and will enable the transfer of knowledge, and the provision of advisory and technical support programs to enhance the development programs led by the Bank, and its efforts to enhance financial inclusion and drive sustainable economic and social development in the Palestinian market, which faces many political and economic challenges.
This agreement follows the implementation of the two international development finance institutions’ intensive due diligence procedures, and is in line with the approval of the Bank’s Extraordinary General Assembly to increase the Bank’s authorized capital to US$300 million. Following the new private issue of shares, Bank of Palestine’s paid-up capital will reach US$253 million, in line with the Bank’s capital adequacy plans aimed at su
pporting the Bank’s growth and expansion. Bank of Palestine has obtained all necessary regulatory approvals for the investment and private issue of shares.
Bank of Palestine, a public shareholding company listed on the Palestine Exchange, is the largest Palestinian financial institution with a market share of 33%, and an active role that covers the entire geography of the West Bank and Gaza. The bank is also present in the United Arab Emirates through a representative office in Dubai, in addition to its regional expansion plans in the Middle East and North Africa region, as part of its five-year strategic plan.
As a leading banking group in Palestine, the Bank is committed to the financial inclusion strategy to achieve sustainable social and economic development in Palestine, and plays an important role in the Palestinian economy, providing banking services to more than one million customers, including in underserved areas. It also focuses on small and medium enterprises at the heart of its strategic plans,
which include lending programs for small and medium-sized enterprises (SMEs) with a focus on empowering women, youth and entrepreneurship. In addition to promoting green financing, and allocating a significant share of its investments to digital innovation and sustainability.
Francis Malige, Managing Director, Financial Institutions, EBRD, said: ‘We are fully committed to supporting the Palestinian economy. Through this investment, we aim to support Bank of Palestine to continue its role as a leading local institution, to enhance its ability to achieve future growth, and to contribute to reconstruction efforts. Bank of Palestine’s role is not limited to strengthening the Palestinian banking sector as a systemically important bank, but rather as a fundamental pillar of the local economy.’
For his part, Hashim Shawa, Chairman of the Board of Directors of Bank of Palestine Group, stressed: ‘Today represents an important chapter in the history of Bank of Palestine’s mission, as two strategic institutions in int
ernational development, the International Finance Corporation and the European Bank for Reconstruction and Development, have taken the initiative to unite their efforts to invest in the bank, which will contribute to strengthening the bank’s capital position, contributing to growth locally and regionally, in addition to enhancing our contribution to the economic recovery efforts in Palestine after the devastating war and economic crisis that has ravaged our country.’ Shawa added: ‘This investment is a testament to the confidence in the bank’s ability to remain steadfast and manage the crisis resulting from the war in Gaza, and it also represents a message of hope and confidence in the bank’s future role in the recovery of the local economy and the regional expansion plan. On behalf of the Bank of Palestine family, I extend my thanks and appreciation to the leaders of the International Finance Corporation and the European Bank for Reconstruction and Development.’
About the World Bank Group
The World Bank Gro
up has long served the Palestinian people in the West Bank and Gaza to help them live a dignified life and gain better opportunities. In the current humanitarian emergency in Gaza, the World Bank Group is working with development partners to provide critical services, including food, water, and essential medical supplies. World Bank Group programs also ensure that essential services such as education, health care, and municipal services continue to be provided to the people of the West Bank. The International Finance Corporation, the private sector arm of the World Bank Group, continues to support businesses, enterprises, and small firms to maintain jobs and financial services to support the economy. The World Bank Group’s programs aim to meet the urgent needs of the people of the West Bank and Gaza and help the Palestinian territories recover.
About the European Bank for Reconstruction and Development (EBRD)
The European Bank for Reconstruction and Development (EBRD) is a multilateral bank that promotes pr
ivate sector development and entrepreneurship in 36 economies across three continents. The Bank is owned by 73 countries, as well as the European Union and the European Investment Bank. The EBRD’s investments aim to make economies competitive, inclusive, well-governed, green, resilient and integrated.
Follow us on the web, Facebook, LinkedIn, Instagram, Twitter and YouTube.
About Bank of Palestine BOP
Bank of Palestine was established in 1960 and is headquartered in Ramallah. It is a commercial bank listed on the Palestine Stock Exchange and is subject to the supervision and instructions of the Palestine Monetary Authority. It is the first and largest national bank among 13 financial institutions operating in Palestine, with total assets of $7.126 billion and a market share exceeding one-third of the Palestinian banking sector in terms of customer deposits and credit facilities. The Bank has a leading banking network of 101 branches spread across Palestine, providing services to more than one million custo
mers including individuals, companies, small and medium-sized enterprises and public sector institutions, through a diverse and wide range of distinguished banking services, such as retail banking, corporate banking, digital and mobile banking services, in addition to subsidiary activities and programs. The Bank also plays a leading role in lending to small and medium-sized enterprises, and is a major contributor to promoting financial inclusion, sustainability and entrepreneurship in Palestine.
Source: Maan News Agency
