Published: May 13, 2013
Bank of Muscat set to receive US$195mn.
The IFC and the IFC Capitalization Fund, which is managed by the development bank’s asset management arm, are to invest US$195mn in Bank Muscat, Oman’s largest commercial lender. The cash injection will help build the bank’s capital base in compliance with Basel III and widen funding to SMEs and female entrepreneurs.
According to the World Bank, only 8% of SMEs in the Middle East and Africa have a loan or credit line. At the same time small businesses account for 80% of emerging market job growth.
Bank Muscat and the IFC have worked together before. In 2006 the development bank offered a US$100mn subordinated loan to go towards housing and SME finance. This was topped up by US$170mn in 2011.