MIRA INFORM REPORT

 

 

Report Date :

8th March, 2007

                                                         

IDENTIFICATION DETAILS

 

Name :

ISLAMIC BANK OF YEMEN FOR FINANCE AND  INVESTMENT

 

 

Registered Office :

Mareb Insurance Co Building, Zubairy Street, PO Box: 18452, Sana’a, Yemen.

 

 

Country :

Yemen

 

 

Date of Incorporation :

25.04.1995

 

 

Legal Form :

Yemen Shareholding Company

 

 

Line of Business :

Engaged in investment, finance and banking services in conformity with the principles of the Islamic Sharia. 

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

Fairly Large

 

Maximum Credit Limit :

US$ 1,000,000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

SUMMARY

 

 

Company Name

ISLAMIC BANK OF YEMEN FOR FINANCE AND  INVESTMENT

Country of Origin

Yemen

Legal Form

Yemen Shareholding Company

Registration Date

25th April 1995

Issued Capital

YR 1,250,000,000

Paid up Capital

YR 1,250,000,000

Total Workforce

288

Line of Business

Investment, finance and banking services in conformity with the principles of the Islamic Sharia.

Financial Condition

Undetermined

Payments

Nothing detrimental uncovered

 

 

 

COMPANY NAME

 

ISLAMIC BANK OF YEMEN FOR FINANCE AND INVESTMENT

 

 

ADDRESS

 

Registered & Physical Address

 

Building             : Mareb Insurance Co Building

Street               : Zubairy Street

PO Box             : 18452

Town                 : Sana’a

Country             : Yemen

Telephone         : (967-1) 206117 / 205680 / 205683

Facsimile          : (967-1) 206116

Email                : ibr-iflbk-yesan@y.net.ye

 

 

Premises

 

Subject operates from a large suite of offices that are rented and located in the Central Business Area of Sana’a.

 

 

Branch Office (s)

 

Subject operates 5 branches located in Sana’a, Hodaidah, Taiz and 2 offices in Aden.

 

 

KEY PRINCIPALS

 

·       Haj Abdul Karim Al Aswadi                                                                Chairman

 

·       Abdul Malik Thabet                                                                            General Manager

 

·       Luqman Al Aswadi                                                                            Finance Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 25th April 1995

 

Legal Form                  : Yemen Shareholding Company

 

Issued Capital              : YR 1,250,000,000

 

Paid up Capital            : YR 1,250,000,000

 

 

Name of Shareholder (s)         Percentage

 

·       Al Haj Abdulkarim Al Aswadi & Sons                                                              41.00%

·       Islamic Development Bank                                                                             10.00%

Jeddah

     Saudi Arabia

·       Ali Sa’ad Murshid & Sons                                                                              7.65%

·       Dallah Al Barakah Co                                                                                    5.00%

Jeddah

     Saudi Arabia

·       Local businessmen and private investors                                                         36.35%

 

 

LINE OF BUSINESS

 

Operations : Engaged in investment, finance and banking services in conformity with the principles of the Islamic Sharia. 

 

Subject has a workforce of 288 employees.

 

 

FINANCIAL HIGHLIGHTS

 

Companies registered in Yemen are not legally required to make their accounts public and no financial information was released by the company or submitted by outside sources.

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

Opinion on the credit figure of US$ 1,000,000:

 

Islamic Bank Of Yemen For Finance And Investment was incorporated in 1995 and is engaged in investment, finance and banking services in conformity with the principles of the Islamic Sharia.

 

During the course of this investigation nothing detrimental was uncovered regarding subject’s operating history or the manner in which payments are fulfilled. As such the company is considered to be a fair trade risk and the above credit figure is within subject’s financial means.

 

Maximum suggested credit figure: US$ 1,000,000

 

 

note

 

Please note that local informants have checked on the status of the subject and report that the Central Bank of Yemen has ordered that the accounts of the board members of Islamic Bank of Yemen for Finance and Investment are to be frozen due to the fact that the bank declared bankruptcy in 2005.

 

It is to be made clear that the bank remains trading whilst initial liquidation/receivership proceedings are put in place. The Central Bank of Yemen is proposing to take over this bank due to their inability to pay their liabilities. The ongoing situation with the bank means that the final outcome is still unclear and it may be some time before the situation is finally resolved.

 

Sources who have made recent enquiries with the subject and the Central Bank of Yemen have been unsuccessful in determining any more information as they have been told the outcome is still undetermined.

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions