FIF - Quds Bank SME loan

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

Provision of a senior MSME loan of up to USD 8.0 million (EUR 7.4 million) in favor of Quds Bank. The MSME loan will be utilised by Quds Bank for on-lending to eligible private MSMEs based in the West Bank to address the needs for credit and support businesses affected by the consequences of the current hostilities in order to stay afloat and maintain operations.

Project ID 55159

Status Repaying

Location

West Bank and Gaza

Business Sector

Financial Institutions

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Company Contact Information

Kais Zuhaika, Head of Financial Institutions
Kais.Zuhaika@qudsbank.ps
+970 599 8200 65
+ 970 2 2983321
www.qudsbank.ps
Al-Masyoun, P.O Box 2471fa, Ramallah, Palestine

Project ID 55159

Status Repaying

Location

West Bank and Gaza

Business Sector

Financial Institutions

Notice Type

Private

Approval Date

24 Jul 2024

Disclosure date

25 Jun 2024

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

FIF - Quds Bank SME loan (Arabic) (PDF, 0.39MB)

Project description

Project objectives

The operation will enable Quds Bank to scale up lending to MSMEs in the West Bank following increased financing needs in the wake of October 7th, 2023 events, which had severe negative impacts on the economic activity in the West Bank in general, and MSMEs in particular.

Transition impact

ETI Score:68

of the largest banks in WB&G, Quds Bank is a key partner to deploy support to local private MSMEs in the West Bank. Accordingly, the expected transition impact is expected to be derived from: (i) the Inclusive quality, by supporting underserved regional MSMEs operating outside the main urban centre of the West Bank, and (ii) the Competitive quality, by focusing on expanding Quds Bank's MSME portfolio while ensuring prudent lending practices.

Client information

QUDS BANK

Quds Bank ("QB") is the sixth largest bank operating in the Palestinian market and the third largest local commercial bank. It has been listed on the Palestine Exchange since 1997. Major shareholders include the Abdul-Latif Jarab family (ca. 30%, including Akram Abdul-Latif Jarab who holds 18%), Palestinian Pension Agency (17%) and Jordan Kuwait Bank (11%), with the remaining shareholders owning under 5% each. QB is an existing client with an active and utilized TFP limit (recently increased to USD 15m).

EBRD Finance Summary

USD .00

USD 8,000,000 out of EBRD's WB&G Net Income Allocation Trust Fund.

Total project cost

USD 8,000,000.00

Additionality

Additionality will stem from the following areas: The Bank effectively bridging a financing gap due to adverse market conditions and offering long-term financing on terms that are currently not available on the market.

Environmental & Social Summary

Categorised FI (ESP 2019): Quds Bank is an existing Client of the Bank and has been satisfactorily complying with EBRD's requirements under the TFP exposure thus far. QB will be required to comply with PRs 2, 4 & 9, and with EBRD's Environmental & Social ("E&S") Risk Management Procedures for Micro, SME and Corporate Lending. The Borrower will be required to submit Annual Environmental and Social Reports to the Bank to monitor their E&S performance and progress.

Technical Cooperation and Grant Financing

None. TC is not envisaged for this specific project.

Company Contact Information

Kais Zuhaika, Head of Financial Institutions
Kais.Zuhaika@qudsbank.ps
+970 599 8200 65
+ 970 2 2983321
www.qudsbank.ps
Al-Masyoun, P.O Box 2471fa, Ramallah, Palestine

PSD last updated

25 Jun 2024

Understanding transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with the EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and its associated Environmental and Social Requirements (ESRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the ESRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation, and to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about the environmental and social (E&S) performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD also requires its clients to disclose information, as appropriate, about the risks and impacts of projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all of the Bank's activities in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The EBRD believes that identifying and resolving issues in the project assessment and approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts andhelps to monitor integrity risks in projects post-investment.

OCCO is further responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, either within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. OCCO will follow-up all matters reported. It will review all matters reported. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP, which entered into force on 1 January 2025, sets out how the EBRD discloses information and consults with its stakeholders to promote better awareness and understanding of its strategies, policies and operations. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (for example, through the client’s project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the mechanism is: to support dialogue between project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or the project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate and how to submit a Request for review. Alternatively, contact IPAM by email at ipam@ebrd.com for guidance and more information on IPAM and how to submit a request.

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

Our story

How we invest in changing lives

What we offer for businesses

Search

FIF - Quds Bank SME loan

Overview

Project timeline

Company Contact Information

Project description

Project objectives

Transition impact

Client information

EBRD Finance Summary

Total project cost

Additionality

Environmental & Social Summary

Technical Cooperation and Grant Financing

Company Contact Information

PSD last updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)