Tunisia - Fifth Societe Nationale d'Investissement Project

FILE Copy DOCUMENT OF INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION Not For Public Use Report No. 17a-TUN APPRAISAL OF SOCIETE NATIONALE D'INVESTISSEMENT TUNISIA Decemnb2r 29, 1972 EMENA/DFC This report was prepared for offficial use only by the Bank Gtoup. It may not be published, quoted or cited without Bank Group authorization. The Bank Group does not accept responsibility for the accuracy or completeness of the report.  Currency Equivalents: 1 Dinar = 2.08 U.S. dollars I U.S. dollar o0.48 Dinar This report is based on a visit to SNI in July 1972, and was prepared by Messrs. Jacques Coudol and Richard L. Storch.  T1IUISIA APPRAISAL OF .SOCIETE NATIGNALE dI'INVESTISSEMENT t(SI) Table or Contents Page No. BASIC DATA . . . . . . . . . . . . . . . . . .. i SJUIARY . . . . . . . . . . . . . . . . . . . . . iv I. INTiODUCTION . . . . . . . . . . . . . . . 1 11. ECONOMIC EN'VIiRMBNNT . . . . . . . . . .. 1 General Economic Performance 1 Financiat Environment 3 HII. SII'S CA>.ALI. CONTfi3UTION . . . . . . . . . 6 itesource MobilU7.,tion 5 .esource Allocation 7 Gh,.racteristics 3 IV. T'E CO4PAT.Y . . . . . . . . . . . . . . . . 10 Purposes and Policies 10 Ownershic 11 Board and Executive Comnittee 11 Mznagenent and Staff 11 Procedures 12 V. OPh.LiTIONS. PCRTFOIO AND FLNANCIAL POSITION . 14 Operations 14 Evaluation of Loan -nd Equity Portfolio 15 Profitability and Financial Position 19 VI. FUTURE OPERATIONS . . . . . . . . . . . . . 21 Economuic Outlook 21 SNI's Operational Forecast 22 aesource Needs 22 Fi.n7incial Projections 24 VII. CONCWSIONS AND RECGO;14MiDATION3 . . . . . . . 25 Conclusions 25 Itecomnendations 26  LIST OF ANNEXS 1. Develotment of Tourist Traffic. 1,61-1)71 2. Long-Term Resources as of June 3Y, 1'-72 3. SNI's Contribution to Investment in Industry and Tourism h. Outstanding Loans and Equity Investments as of December 31, 1"71 5. Commitments by Size and Location 6. Statement of General Folicies ani Orerations t. Ownership Structure Board of Directors and Executive Committee Organ nation Chart I . AuMltei Income Statements, 1$'69 to June 3", l172 11. Auiditei Balance Sheets, 1669 to June 3". 1'72 12. Forecast of Cperatfons. 1 72-1A77 13. Estimated Disbursement Schedule for the Proposed Bank Loan 14. ProjecteI Resource Needs. 1i72-1574 15. 1-rojecteu Income Statements. 1'72-l'77 16. ProJected Cash Flow. 1972-1577 17. Project-i Dalance Sheets. 1572 1W77  SOCIETE NITIONALE DINVESTISSEkqNT BASIC DPTP YTar of Establishment.: 195S9 Year of Reorganization: 1965 % of Ownership (as of June 30, 1972) No. of Shares Total (D 5/shar-e) Government, direct and indirect 132,996 22.2 Tanisian private banks 57,915 9.7 Other Tunisians 198,144 33.0 Total ninisian 389,055 64.9 re f-gn institutions and individuals 9o,9s5 15.1 IFt 120,000 20.0 Total Foreign 210,945 35.1 Total Caoital 600,coo 100.0 Bank Group Financing I. IFC iNv--Xm7NTS IN 'WI'S SHARE C-APITAL Date Number of Cost Per Total investment Investment No. approved Shares Share at Cost (us $) (US$)T 106 May 10, 1966 60,000 9.60 575,926 177 June11, 1970 60,000 10-54 632,36,. Total 120,000 10.07 1,208,231 II. IERD L,OA! S Statts of Loans as of November 30, 1972 (in US$ '000) Date Rate of Net Lo-4n No. Signed Interest Amount Authorized Disbursed 449-TUN Mpy 16,1966 Variable 4,722 4,722 4,722 512-TUN Sept.14,1967 Variable 9,292 9,292 9,292 618-TUN Dec. ?h,1969 71 10,000 9,Th7 8,193 798-T!TN Feh. 9, 1972 7 1 10,000 5,6169 1,852  - ii - (D million) O?ERATTONS Loans 1968 1969 1970 1971 1972 * (6 mos) ADDrovals 3.3 3.7 6.4 5.0 3.9 Cottnitments 3.0 4.8 5.7 4.4 .4 Disbursements 2.5 2.9 3.7 3.3 1.8 Fquity Investments Subscri-'tions 0.2 0.7 0.2 0.2 _ sales 0.2 0.1 0.14 0.1 FINANCTAL P3RFORVNCE Financial Position 1. Total Assets 7.6 10.8 14.9 18.0 19.7 of which Loan Portfolio (3.?) (6.1) (9.0) (11.5) (12-8) F mity Portfolio (1.6) (2.2) (1.9) (2.0) (2.0) 2. T,)t.al FEuity 2.6 2.7 2.8 4.5 4.5 3. Long Term Debt 3.8 6.0 8.5 10.2 10.9 of which Bank Loans (2.3) (4.1) (6.5) (8.2) (8.4) 4. Long Term Debt/Equity 1.5 2.2 3.1 2.3 2.4 5. Long Term Debt/Equity as defined in Bank Lo.n Agreement 1.0 2.0 2.7 2.1 2.3 Fin-ncial Results (in ' = 1. Earnings before interest, tax and provisions as % of average total assets 3.9 5.4 4.7 5.6 3.1 2. Profit before ta- as Z of average equity 7.2 7.5 6.5 9.4 4.9 3. Profit after tax as X of year-end share c'nital 12.0 13.2 8.9 8.6 6.3 L. 'U&Tnistrative costs as d of average total assets 1.8 1.4 1.1 1.L 0.7 5. Reserves and provisions as d of total portfolio 20.8 1h.9 11.8 f1.4 10.14 6. Book value as % of Dar 173 182 186 151 151 7. Dividend as d of par 4 5 6 6 - :Il fii-urcs in thi.s co'lumni are ozi a semi-annual basis.  - lii- ABBREVI!- ONS SNI - Societe Nationale d'Investissement STi - Societe Tunisienne de Banque BNT - Banque Nationale Tunisienne COFITOIR - Comnagnie Finmnciere et Touristique BGI - Banque Generale d'Investissement SIDA - Swedish International Development Authority EEC - European Econoric Community 'TT - Office Nationale du Tourisme and Thermalisme CCCE - Caisse ventrale de Cooperation Economique CNEI - Centre Nationale d'Etudes Ir.dustrielles  - iv - APPAUI4,L OF SOCIETE NATIONALE DVINVE5TISSEfENT i. :ThiS report br-Ings up-to-& te the situation and prospects of SNI w.hich were dsr-ribed in detnil irn reoort DB3-11(a), of D'criaber 28, 1971. ii. Economic condit'ons .n Tm.- were good to 49"71 and the trend continued during ttue fir3st months of 197?. In 1971, industrial outDut increased by 9- n tcvuS sm .evelopo1 'y 391. S_ lhas bene- fi*t'd f'rom the boorm in 'Thnisia s econor.y ani i