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| Credit Libanais |
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| Summary of Proposed Investment |
| This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. |
| Project number | 25869 |
| Company name | Credit Libanais SAL |
| Country | Lebanon |
| Sector | Finance & Insurance |
| Environmental category | FI |
| Department | Global Financial Markets Group |
| Status | Active |
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| Date SPI disclosed | January 24, 2007 |
| Projected board date | February 26, 2007 |
| Previous Events | Invested: November 16, 2007
Signed: July 25, 2007
Approved: June 12, 2007 |
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| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
Credit Libanais SAL (the Bank) was incorporated in 1961 as a Lebanese Joint Stock Company and is subject to regulations and supervision by the Central Bank. The Bank’s head office is located in Sofil Center – Beirut Lebanon.
With 56 branches in Lebanon and one international banking unit in Limassol - Cyprus, the Bank provides a full range of banking services including retail, corporate, trade finance services, capital markets services, and investment banking.
The purpose of this project is to increase access to finance to private sector companies and individuals who were adversely affected directly and indirectly as result of the conflict suffered Lebanon. The project is part of the Lebanon Rebuild Program involving up to 5 banks for a total of $200 million to be mobilized support to private sector enterprises affected by the conflict. Along with the Credit Lines in total amount of $100-$125 million to support corporate clients the Program also offers a SME Risk Sharing Facility in a total amount of $75-$100 million. |
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| Project sponsor and major shareholders of project company |
| Since 1997, the Bank was acquired by Capital Investment Holding (Manama – Bahrain) and Capital Investment Holding (Lebanon) SAL, both entities principally controlled by the Bin Mahfouz family; founders and former principal shareholders of National Commercial Bank in the Kingdom of Saudi Arabia. |
| Total project cost and amount and nature of IFC's investment |
| Total project cost is estimated up to $80 million including corporate credit line, risk sharing facility, and trade line. |
| Location of project and description of site |
| Headquartered in Achrafieh, Beirut-Lebanon, Credit Libanais has a well recognized franchise and offers a wide range of retail and corporate banking services across the country. |
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| Anticipated development impact of the project |
- Maintain and/or increase bank lending:
With the destruction and economic downturn in Lebanon, private banks may reduce their loan exposures at the expense of SMEs, corporations and consumers. Any such reduction would cause loss of jobs and increases in the poverty rate. The proposed IFC investment should help maintain and/or increase bank lending to these groups as well as maintain the economic well being of the underlying communities and stakeholders.
- Support for the private sector lending to SMEs and corporate clients:
SMEs and corporate clients make up a large share of Lebanon’s economic output and provide vital contributions to employment generation in impoverished areas.
Increased access to finance in these target markets can help re-boost under-funded enterprises. |
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| IFC's expected development contribution |
IFC’s role is to provide a range of interventions over the near and medium term in post-conflict Lebanon, including the proposed credit line facility, risk sharing initiative and trade finance program, through commercial banks.
IFC’s program is designed to be an effective and timely response to provide the needed funding, up to $200 million, to support the private sector through the anticipated difficulties as a result of a recent conflict. |
| Environmental and social issues - Category FI |
This project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure.
IFC will analyze and review the Bank’s portfolio, and the activities proposed to be supported with IFC financing, for types of transactions, size, tenor and industry sectors and determine the Applicable Requirements, if any, that would include a combination of:
- the IFC’s microfinance exclusion list(s); and/or
- the applicable National Environmental and Social Laws and regulations.
Based on the review, Credit Libanais will be required to:
- Develop a Social and Environmental Management System (SEMS) that ensures that activities supported by the facility are consistent with the Applicable Requirements;
- Identify responsible, qualified persons to manage and implement the SEMS;
- Commit to implement the SEMS, to ensure that its investments/ activities supported by IFC financing are in compliance with the Applicable Requirements;
- Commit to take action to remedy any gaps in SEMS implementation on an on-going basis; and
- Submit a periodic report to IFC as per a format to be provided by IFC. |
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| For inquiries about the project, contact: |
Mr. Elie Abi Mrad, Group Financial Officer
Credit Libanais SAL
Sofil Center
Charles Malek Avenue
P.O. Box 16-6729 Ashrafieh
Beirut - Lebanon
E-mail:eabimrad@creditlibanais.com.lb |
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| For inquiries and comments about IFC, contact: |
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster |
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