Washington, D.C. / Amman, August 17, 2008—IFC,
a member of the World Bank Group, is establishing a partnership with Omnix
International and Cairo Amman Bank to introduce a new program in Jordan
that will provide loans to university students, including those from lower
income backgrounds who are unable to afford tuition fees.
By spreading the cost of tuition over the
life of the loan, the program will enable more students to obtain financing
for higher education. The enrollment rate for public and private universities
in Jordan is about 22 percent, a low figure that is due in part to the
financial difficulty of students to pay for tertiary education.
The student loan program is expected to benefit
around 3,000 students and will consist of a portfolio of loans in Jordanian
Dinar equivalent to $12.5 million. The loans will be affordable and limited
to tuition costs with a maximum maturity of eight years. Omnix International
will contribute funds to establish the program and cover initial risk.
IFC will provide a structure to share the senior risk. Cairo Amman
Bank will share the risk as well as originate, fund, and administer the
loans and manage the overall program.
Jamal Abu Issa, Founder of Omnix International,
said, “The project will present an important opportunity for students
and their families to obtain financing for higher education. By providing
student loans, the project will increase access and promote social and
economic diversity in higher education.”
Khaled Sabih Masri, Chairman, Cairo Amman
Bank, said, “The project is an important initiative by Cairo Amman Bank
in our strategy to serve consumer needs in all areas, including education
financing. We value our partnership with Omnix International and
IFC in launching this innovative program.”
Guy Ellena, IFC Director for Health and Education,
said, “The project fits well with IFC’s strategy of supporting student
loan programs as a means of promoting greater participation in higher education
for people of all income groups and introducing innovative means of financing
and delivering services.”
Michael G. Essex, IFC Director for the Middle
East and North Africa, said, “IFC played a key role in structuring the
facility and bringing the parties together. By demonstrating that student
lending is commercially viable, the project may encourage other financial
institutions to enter the sector.”
About IFC
IFC, a member of the World Bank Group, fosters
sustainable economic growth in developing countries by financing private
sector investment, mobilizing private capital in local and international
financial markets, and providing advisory and risk mitigation services
to businesses and governments. IFC's vision is that people should have
the opportunity to escape poverty and improve their lives. In FY07, IFC
committed $8.2 billion and mobilized an additional $3.9 billion through
syndications and structured finance for 299 investments in 69 developing
countries. IFC also provided advisory services in 97 countries. For more
information, visit www.ifc.org.
About Omnix International
Omnix International is a leading provider
of Enterprise software, networking, and security solutions in the Middle
East. It was founded in 1987 by Jamal Abu Issa and is part of the Omnix
group of companies which has operational and investment interests in a
diverse range of industries globally. For more information, visit www.omnix.ae.
About Cairo Amman Bank
Headquartered in Amman, Cairo Amman Bank
was established in 1960 as a public shareholding limited company that has
become one of Jordan’s leading banks offering comprehensive retail, commercial,
and investment banking services. With 60 branches in Jordan, 17 in Palestine,
and a network of 177 ATMs, the bank has also set up selling points in 96
post offices in Jordan with the agreement of the Jordan Post Company to
reach remote areas that lack financial services. For more information,
visit www.cab.jo.
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