Announcement of IFC Helps to Finance Senegal Housing Bank on July 1, 1980

International Finance Corporation • 18i8 H Street. N.W. Washington. D.C 20433, U.S.A 202-477-1234 IFC Press Release No. Tuesday July 1, 1980 IFC Helps t,q Finance Senegal ~ousing·Bank The International Finance Corporation (IFC) is investing $475,000 in the equity capital of Banque de l'Habitat du Senegal (BHS), a specialized Senegalese institution which primarily finances housing for lower-middle income groups. In investing in the predominantly privately owned bank, IFC joins some 75 private and public sector shareholders, inclw;ling practically every financial institution in the country. IFC's investment is about 8.6 percent of the total share capital, which amounts to $5.5 million. • BHS was recently established with technical assistance from IFC and the World Bank, with which IFC is affiliated. The project complements a World Bank assisted sites and services project in Senegal. Housing is in short supply in Senegal and BHS is expected to increase the availability of new housing units, make housing more affordable to a broader segment qf the population while, at the same time, increasing the volume and term of domestic savings in Senegal. By tapping institutional savings through longer-term bonds and by issuing bonds to the public, BHS will contrib- ute to broadening the capital market. In addition to its capital and a Government seed capital grant, BHS expects to raise funds from savings deposits, placements of bonds and loans, Central Bank rediscount facilities and housing tax revenues. BHS operations are also expected to increase building activity which, in turn, should stimulate the local construction industry, encourage development of small and medium-scale construction related businesses, and help create new jobs, • (Any inquiries strictly relating to IFC's participation in this project should be directed to the IFC Information Office~ 1818 H Street, N.W., ·washington, D.C. 20433, Telephone (202) 676-0394.)