MENA Report December 12, 2014

M Mortgage Finance () Ltd

Project Description M Mortgage Finance (Tanzania) Limited (M Mortgages or the Company) is a greenfield mortgage finance being setup in Tanzania in Partnership with Bank M Tanzania Limited, a local Tanzania Bank, Housing Development Finance Corporation Limited India (HDFC), the largest housing finance company in Asia and prominent local investors, namely Sanjay Suchak and the Karimjee family of Tanzania.

M Mortgages will be the first specialized mortgage lender in Tanzania.

Project Sponsor and Major Shareholders of Project Company The project sponsor is Bank M Tanzania Limited (Bank M). A full-fledged regulated by the . Bank M was issued a banking license and commenced operations 2007. The bank has a wholesale banking business model focused on large business families in Tanzania. Bank M has 6 branches and has grown to become amongst the top ten in Tanzania. Bank M s shares are privately held however, its corporate bond is listed on the Stock Exchange.

The proposed shareholders with shareholding are:

Bank M 40%

HDFC Investments Limited 15%

IFC 15% Sanjay Suchak 15%

Armut Limited 15%

Total Project Cost and Amount and Nature of IFC~s Investment:

The total project is estimated at Ten Million Dollars (US$10million). The proposed IFC investment is an equity investment of US$1.5 million for IFC s own account.

Location of Project and Description of Site: The Company will operate primarily out of Dar es Salaam, the commercial center of Tanzania. However, it will have a nationwide offering through direct branches and alternative distribution channels which include branches of Bank M.

MENA Report December 12, 2014

Expected Development Impact This investment would generate a high developmental impact through:

(i) Increased access to finance for affordable housing units in Tanzania;

(ii) Increased capitalization of the Tanzanian financial sector, promoting liquidity, lower lending rates, and growing profits. There are also ripple effects including benefits to building material suppliers and utility and infrastructure providers as the housing sector grows;

(iii) Creation of direct and indirect employment opportunities for unskilled, semi-skilled and skilled labor by financing construction. IFC’s Expected Role and Additionality

IFC provides significant additionality by:

(i) Playing a central role in structuring the JV between HDFC and local Tanzanian investors, thereby fostering South-South investment;

(ii) Supporting a strategic partner to replicate its successful business model in a different market; (iii) Providing equity to help M Mortgages reach its regulatory capital require

Country: Tanzania, United Republic of