Proparco and Bank of Palestine announce equity investment

Proparco and Bank of Palestine announce a new equity investment of EUR 10 million (equ. USD), by which Proparco is increasing its equity stake in the Bank, becoming the second-largest International investor.

This additional equity investment follows the original investment of the company in 2021 during which Proparco subscribed into additional shares to boost the capital base of the bank. 

The recent round of investment comes during a time when the bank is raising capital to meet both its regulatory capital adequacy requirements and prepare for future growth of the bank’s operations in support of future economic recovery and reconstruction, including plans for regional expansion.  It is worth noting that both IFC and EBRD; existing shareholders in the Bank of Palestine; decided to exercise their right as shareholders and as such; top up their investments in order to maintain their ownership percentage as a result of the additional capital increase done through Proparco’s investment. This is another sign of confidence exemplified by all existing shareholders of the Bank from the International Development Community.

“Proparco is honored to continue supporting Bank of Palestine alongside IFC and the EBRD. In one of the world's most fragile environments, strengthening the resilience of the financial system is vital – not only for stability today, but for the recovery and development that lie ahead”, said Francoise Lombard, CEO of Proparco.

“Bank of Palestine is proud to welcome Proparco’s additional investment through another primary issuance of shares as part of our efforts to raise capital to fuel our growth at home and in the region. Today the bank is at a crossroad, recovering from the impact of the war on Gaza and moving forward in strategic plans of regional expansion and economic recovery. We salute the leadership of France and Proparco for their second vote of confidence in the Bank and we look forward to work together in enhancing our bank’s contribution to economic resilience,” said Hashim Shawa, Chairman of Bank of Palestine.