Investment Projects in Lebanon

IFC’s portfolio in Lebanon includes investments in:

• banking sector, for on-lending to businesses, particularly small and medium enterprises
• retail sector – with Admic, one of Lebanon’s largest retailers
• education sector, where IFC is supporting the Sabis International Schools System in a new investment in Adma.

In support of reconstruction efforts and as part of the Paris III program, IFC is leading World Bank Group efforts on postconflict private sector development and investing in the country's local banks and businesses. Since the end of the conflict, IFC has signed projects worth $166 million, including the first four transactions in a package of lines of credit and other lending incentive programs to the local financial sector. Some 1,500 local companies will get new loans for working capital, expansion, and other needs under the program, the centerpiece of IFC's pledge at a January 2007 Lebanon donor meeting in Paris where IFC pledged between $250-275 million to support Lebanon. The financing primarily supports smaller businesses, the main drivers of economic growth in the country.

IFC Executive Vice President and CEO Lars Thunell launched the initiative in Beirut in March 2007, signing an initial $50 million loan agreement with Blom Bank, another loan agreement of $25 million with Fransabank, and an advisory services package to assist Kafalat, a local company whose guarantees help smaller businesses obtain commercial bank loans. This was some of the first financing to arrive from the international funds pledged in Paris.

In addition, immediate postconflict support was made available through the expansion of IFC's trade finance program in Lebanon, allowing companies to restart their activities quickly. IFC's financing has been augmented by a comprehensive advisory services program covering microfinance, gender, access to finance and SME support.