Press Releases

(Paris, July 7, 2008) --- In anticipation of the first Summit of Heads of State and Government leading to the creation of the "Union for the Mediterranean" on July 13, 2008 in Paris, a group of nine private banking institutions on the northern and southern shores of the Mediterranean have decided to create a joint task force. The aim of this task force is to facilitate and reduce the cost of fund transfers for migrant workers living in Europe and to encourage savings with a view to increasing productive investment, promoting the growth of SMEs and the financing of infrastructure projects in southern Mediterranean countries. Accordingly, a memorandum of agreement was signed* on July 7 by this initial consortium of financial institutions: Al Amana (Morocco); Attijariwafa bank (Morocco); Bank of Alexandria (Egypt) (1); Banque Internationale Arabe de Tunisie (BIAT - Tunisia); Banque Tuniso-Koweitienne (BTK - Tunisia) (2); the National Confederation of Spanish Savings Banks (CECA - Spain); Crédit Immobilier et Hotelier (CIH - Morocco) (3); Groupe Caisse d'Epargne (GCE - France); Intesa San Paolo (Italy).

The European Investment Bank (EIB) and the French Development Agency (AFD), in their capacity as observers, have also signed this memorandum of agreement to allow them to take part in the reflections of the banking institutions and to join in the different initiatives. This initial group of signatories may be joined by other institutions wanting to take part in the development of a project of this nature.

Every year, the transfer of funds effected from the European Union by migrant workers to southern Mediterranean countries represents an aggregate total in excess of E10bn, an amount that is growing in volume by almost 15% per year. Most of these transfers, however, are completed outside traditional banking channels (money transfer companies, post office, informal channels) and are subject to the payment of relatively high commissions. Both the savers themselves and the economies of the countries benefiting from these fund transfers suffer from this situation. What is more, no single banking institution currently possesses networks on both sides of the Mediterranean that are sufficiently well-developed to organize these exchanges on a large scale.

On the basis of these observations, the signatories have decided to study how they can work together:

• To develop a range of banking and financial products dedicated to the needs of migrant workers living in Europe, and to facilitate account-to-account transfers between customers of the banks in the joint task force.
• To promote savings with a view to reallocating funds for productive purposes to medium- and long-term investments (including, in particular, infrastructure projects) on the southern shores of the Mediterranean.

By teaming up with this initiative, the signatory banks reassert their determination to be active stakeholders in, and to give tangible reality to, the Union for the Mediterranean in the migrants' day-to-day lives, convinced that "without strengthening ties between the Mediterranean economies, no renewal in the political dialogue - which is itself favorable to business development and, beyond this, to a better mutual understanding between different peoples - will be possible."

* Al Amana, represented by its Chairman Ahmed Ghazali; Attijariwafa bank, represented by its Chairman, Mohamed El Kettani; Bank of Alexandria, represented by its Chairman, Mahmoud Abdel Latif; BIAT, represented by its Chief Executive Officer, Slaheddine Ladjimi; BTK, represented by its Chief Executive Officer, Abdelghaffar Ezzeddine; CECA, represented by its Chief Executive Officer, Jose Antonio Olavarrieta; CIH, represented by its Chairman, Khalid Alioua; Groupe Caisse d'Epargne, represented by the Chairman of the Management Board of Caisse Nationale des Caisses d'Epargne, Charles Milhaud; Intesa Sanpaolo, represented by its Chairman, Enrico Salza.

(1) A subsidiary of Intesa San Paolo
(2) A subsidiary of Groupe Caisse d'Epargne
(3) A subsidiary of Groupe Caisse d'Epargne and of Caisse de dépôt et de gestion (Morocco)

Al Amana
Al Amana is a Moroccan banking institution specializing in microfinance. It was created in 1997, and 500,000 individuals previously excluded from traditional financing systems are now able to benefit from its loans. This population is evenly divided between men and women, and between people living in urban areas and in rural districts. Their sectors of activity are retail distribution, agro-pastoral activities, craft trades and services without mentioning housing loans. Four-fifths of the loans granted by Al Amana are arranged within the framework of mutual guarantee groups; the others are granted on the basis of individual references. The average size of the loans granted is in the region of E700; the size of the average loan outstanding is E400 for an aggregate portfolio of E20m. The quality of reimbursement is excellent, and Al Amana is currently in the process of developing new services that will include cash transfers, deposit taking, online and telephone banking services, and the intermediation of insurance products.

Attijariwafa bank
The largest banking and financial group in the Maghreb, and the 8th largest on the African continent, Attijariwafa bank boasts a robust financial structure, a capital of wide-ranging know-how and modern appraisal tools that make it one of the key players in Morocco's economic development today. Attijariwafa bank has set itself a dual objective: to perform at a level equal to the best international standards and to position itself with a view to expanding its influence in the Euro-Mediterranean area and to embracing international competition. The bank runs more than 620 branches in Morocco and more than 150 branches and outlets in foreign countries. It has a total of almost 8,200 employees.

BIAT
Banque Internationale Arabe de Tunisie (BIAT) is a universal, full-service bank working with a clientele of private individuals, professionals and corporate customers. It is one of the largest financial institutions in North Africa and the largest private bank in Tunisia. BIAT was the first Tunisian commercial banking institution to make non-resident customers a key target for whom it offers a full, customized range of services.
In pursuit of the development of its activities in the international arena, and in order to provide support for its increasingly international clientele, BIAT opened a representation office in Libya in September 2007. This constitutes the bank's second office following the one opened in Paris in October 1990. The bank has also undertaken the steps necessary for starting operations in Algeria.

The Confederation of Spanish Savings Banks
In 1928, on a initiative of the Federation of Basque-Navarre Savings Banks, the Spanish Confederation of Savings Banks (CECA) was constituted, with the object of uniting the forces of the members and acting as a representative body in different forums. At present, the CECA is made up of 45 Spanish Savings Banks and is considered, furthermore, a credit entity without any specific limitation. The CECA supports the Savings Banks in a double manner, on the one hand as an association and, on the other, as a supplier of specialised services. As a association, the CECA :-represents the Savings Banks with regard to public power and in the international environment; acts as a common Study Centre for all matters affecting the Savings Banks; collaborates with the financial authorities; acts as an operating Coordination Centre for information, advising and communication and marketing.
As a service supplier, the CECA offers the Savings Banks a wide range of associated operating, financial and technological services.

Crédit Immobilier et Hôtelier (CIH)
A Moroccan bank traditionally specializing in lending to customers in the real estate and hotel industries (one of the public authorities' key partners for the financing of housing and a major bank for property developers in Morocco), CIH intends, with its shareholders - Caisse de dépôt et de gestion (Marocco) and Groupe Caisse d'Epargne (France) -, to develop a position as a front-ranking non-specialized retail banking institution serving a clientele of private individuals. CIH runs a network of nearly 130 branches, employs a staff of over 1.400 people and serves a total of over 350.000 customers.

Groupe Caisse d'Epargne, and its subsidiary Banque Tuniso-Koweitienne (BTK)
One of the largest retail banking institutions in France, Groupe Caisse d'Epargne is a front-ranking full-service, universal bank. The Group has launched its international development, notably in the Maghreb, via Océor, its commercial banking arm in the international arena and in French overseas territories. Already owning an equity interest in CIH (Morocco), the Group recently acquired a 60% stake in the capital of BTK, which has been granted official approval as a full-service, universal bank in Tunisia and owns several subsidiaries specializing, in particular, in providing corporate and infrastructure financing solutions.
Founded in 1981, BTK was authorized to operate as a universal, full-service bank in 2004. A 60% subsidiary of Groupe Caisse d'Epargne (France) since earlier this year, BTK offers a range of products and services designed to meet the needs of corporate, professional and individual customers. Operating through subsidiaries specializing in leasing, venture capital, consultancy and financial intermediation, BTK has developed an ambitious development plan in terms of market share, the opening of new branches and recruitment for the period running from 2008-2012.

Intesa Sanpaolo, and its subsidiary Bank of Alexandria
The Intesa Sanpaolo Group, one of the top banking groups in Europe, is the leader in Italy in financial activities addressed to both households and enterprises. The Group enjoys a strategic coverage in Central-Eastern Europe markets, where it positioned among the top players in several countries, while it is strengthening its presence in new areas such as the Mediterranean basin, where it controls Bank of Alexandria, Egypt's sixth largest bank. The Group activities are organised in business units: Territorial Bank Division (individuals, small business, SMEs and non-profit entities); Corporate and Investment Bank Division (corporate and financial institutions); International Subsidiaries Bank Division (retail and commercial subsidiaries abroad); Banca Infrastrutture Innovazione e Sviluppo (the Group subsidiary for the public finance sector); Eurizon Capital (the leading asset management company in Italy); Banca Fideuram (leader in Italy in the financial advisors sector)
Bank of Alexandria was established in 1957. In October 2006, it was privatized via selling 80% of its shares to the Italian Group Intesa Sanpaolo under whose innovating systems and mechanisms it now operates. The strategy focuses particularly the SME segment, leveraging the skills that Intesa Sanpaolo has gained in that area, and the retail segment, but the bank is also present in the corporate banking business and is able to offer services to big Egyptian conglomerates and international corporations with a presence in Egypt. The Bank is active in the micro finance business to support the needs of small and micro business that usually have difficulties in approaching the banks. Bank of Alexandria has a country-wide network of 185 units serving 1.3 million customers.

FEMIP, subsidiary of the European Investment Bank
FEMIP's remit is to promote the development of nine countries: Algeria, Egypt, Israel, Jordan, Lebanon, Morocco, Syria, Tunisia and Gaza/West Bank. Its two investment priorities are: support for the private sector, the driving force behind sustainable growth, and the creation of an investment-friendly environment by means of efficient infrastructure and appropriate banking systems. FEMIP has established itself as the main financial partner of the Mediterranean region, with more than EUR 7bn invested since 2002. It also encourages dialogue between the two shores of the Mediterranean, at the institutional level but also with the representatives of the private sector and civil society.

French Development Agency (AFD)
A public institution, the French Development Agency (AFD, or Agence Française de Développement) has been actively engaged, for more than 60 years, in the combat against poverty and in favor of the development of the countries in the Southern Hemisphere within the framework of French foreign aid schemes ("cooperation"). Present in more than 70 different countries and in French overseas territories, AFD finances and supports projects designed to improve the living conditions of local populations, to reinforce economic growth and protect the natural environment. Sub-Saharan Africa is a priority for the Agency, which devotes more than 70% of its grants to this part of the world. In 2007, the Agency and Proparco, its subsidiary specializing in the financing and promotion of the private sector, devoted E3.5bn to funding actions in Southern Hemisphere countries and in favor of overseas French territories. The initiatives in question concerned, in particular, schooling for 5.8 million children and the supply of drinking water to
4 million people. Projects in the area of energy efficiency undertaken in the same year will make it possible to save 2.7 million metric tons of CO2 per year.

The success of the operation confirms the interest of an economic model which focuses on sustainable investments in South countries.
This success is particularly interesting in view of PROPARCO’s unique economic model based on:

    * a portfolio of projects selected first for their social, environmental and economic impacts;
    * a unique approach to time and risk which means PROPARCO focuses exclusively on long-term financing in geographical areas or on counterparties considered too risky by commercial banks;
    * a governance model which is unique among its European partners with its capital and Board of Directors open to public and private partners from both the North and the South.

As an example of this selection based on impacts, between 2005 and 2007, thanks to PROPARCO’s activities:
• 160 000 people gained access to microfinance services;
• 675 enterprises and 107 000 jobs were created;
• 28.9 million new subscribers were connected to phone networks;
• 1 667 Mw of electricity generation capacities were created saving 5.7 Mt of CO2 and providing 750 000 households with access to modern energy.

A capital increase predominantly subscribed by public and private partners from the North and the South

The capital increase was predominantly subscribed by partners outside AFD Group and consolidates the governance of PROPARCO which is open to private and public shareholders from the North and the South.
The main French financial institutions which support its mission of sustainable development in South countries are CDC Entreprises, Caisse d’Epargne Group via Financière OCEOR, Crédit Agricole SA, Banque Fédérale des Banques Populaires, Natixis, BNP Paribas and COFACE. 

Several partners from the South also expressed their will to strengthen their partnership with PROPARCO: the Development Bank of Southern Africa, the Banque Marocaine du Commerce Extérieur, Bank of Africa Group and development institutions (West African Development Bank and the Aga Khan Group via AKFED).

Finally, this operation provided the opportunity to strengthen the role of global players in the environment sector with Suez and Veolia and industrial partners such as Bouygues and Somdiaa.

It also reaffirmed the strategic partnership between PROPARCO and its German counterpart DEG and brought a first representative of French ethical and solidarity investment, Natixis Asset Management, into its capital.

Thanks to this operation PROPARCO will be able to allocate almost 4 billion euros of investments in South countries in five years.

PROPARCO’s partners have reaffirmed their confidence and will make it possible to allocate almost 4 billion euros in five years. PROPARCO’s financial stability will also be strengthened within the context of extending its activity to emerging countries which are by nature more volatile.
PROPARCO will strive to provide financial solutions for innovative projects which catalyze investments from private financiers and will consequently strengthen its arrangement and syndication capacities.

According to Mr. Luc RIGOUZZO, CEO of PROPARCO: “PROPARCO’s North-South shareholding platform is a recognition of the increasingly important role of South institutions in development aid and will be a trump card for PROPARCO’s growth strategy which is based on its activities and historical competencies: expertise in Africa, private equity investment in the Mediterranean and combating climate change in Asia.”

PROPARCO is a Development Finance Institution jointly held by Agence Française de Développement (AFD) and by private shareholders from the North and South. Its mission is to promote private investment in emerging and developing countries in support of growth, sustainable development and reaching the Millennium Development Goals (MDGs). Proparco finances operations which are economically viable, socially equitable, environmentally sustainable and financially profitable. Its sectoral strategy is tailored to the level of development of countries and focuses on productive sectors, financial systems, infrastructure and equity investment. PROPARCO invests in a geographical area encompassing major emerging countries and the poorest countries, Africa in particular, and has extremely high requirements in terms of Social and Environmental Responsibility. In 2007 PROPARCO allocated 600 million euros for more than fifty projects in over thirty countries.

Agence Française de Développement (AFD), a public institution, has been combating poverty and promoting the development of South countries within the framework of France’s official development assistance for over 60 years. AFD is active in the field in over 70 countries and Overseas France and finances and supports projects which improve living conditions for populations, stimulate economic growth and protect the planet:
schooling for children, support to farmers, support to small enterprises, water supply, preserving tropical forests, combating climate change… In 2007 AFD pledged 3.5 billion euros to finance actions in South countries and Overseas France. Thanks to this financing 5.8 million children received schooling and 4 million people received water supply. Energy efficiency projects for the same year will reduce CO2 by 2.7 million tons annually.

AFD press relations

Guillaume de Saint-Phalle, desaintphalleg@afd.fr - Tel.: 33 (0)1.53.44.36.64 - Laure Weisgerber, weisgerberl@afd.fr – Tel.: 33 (0)1.53.44.30.57
PROPARCO
Benoît Verdeaux,  verdeauxb@afd.fr – Tel.: 33 (0)1.53.44.37.50