Beirut, Lebanon, May 9, 2016—IFC,
a member of the World Bank Group, with the support of the Government of
Canada, is helping Fransabank, the third largest banking Group in Lebanon,
scale up its lending to businesses that are looking to adopt renewable
and energy-efficient technologies and mitigate climate change.
IFC will provide a loan package of US$20
million to Fransabank to help increase its lending for energy efficiency
and renewable energy projects. This is expected to help businesses save
energy, reduce greenhouse gas emissions, and promote sustainable development.
The financing package includes a US$14 million loan from IFC’s own account,
and a US$6 million loan from the IFC-Canada Climate Change Program.
The investment marks IFC’s fourth loan
to Fransabank Group in sustainable energy finance (SEF). In May 2014, IFC
provided a US$10 million loan to the Bank and a US$3 million loan to its
leasing arm, the Lebanese Leasing Company SAL (LLC). Both loans were fully
utilized. In January 2016, a US$ 7 million loan was also granted to LLC.
“The Bank has financed till date projects
in different sectors, such as Agriculture, Industry, Green Buildings, Education,
Health, Tourism, etc. This additional investment from IFC and Canada will
help Fransabank to support clean energy technologies and encourage sustainable
practices that will improve competitiveness of local companies and increase
their profitability,” said Adnan Kassar, Chairman of Fransabank Group.
"Supporting energy efficiency and
renewable energy projects is key to fostering a sustainable future in Lebanon
and other parts of the region,” said Mouayed Makhlouf, IFC Regional Director
for the Middle East and North Africa. “This loan to Fransabank highlights
a growing demand for cost-effective and energy-efficient solutions among
The Government of Canada's contribution
to the IFC-Canada Climate Change Program has helped make this financing
package viable. To date, Canada has provided CA$271 million to the program,
to enable climate change investments that are generating significant environmental
and economic benefits in developing countries.
“Climate change affects everyone, and
we must work together to find the solutions the world needs. The Government
of Canada’s investment in renewable energy initiatives in Lebanon is helping
to encourage the adoption of a greener economy, achieve GHG reductions
and foster a cleaner, more prosperous global future,” said the Honourable
Catherine McKenna, Canada's Minister of Environment and Climate Change.
Lebanon’s greenhouse gas emissions
have increased by 28 percent since 1994 and continue to rise. The
project will help reduce those emissions by 95,000 tons per year by year
2020, and strengthen sustainable energy financing in Lebanon.
Sustainable Energy Finance is part of
Fransabank Group ‘Go Green Strategy’. Fransabank is looking to further
increase its SEF portfolio by targeting new market segments. This will
help it improve the risk profile of its portfolio and enhance its social
and environmental image.
The initiative is part of IFC’s Sustainable
Energy Finance Program, which aims to develop the capacity of banks and
financial institutions to extend sustainable energy financing to the private
sector. To date, through the program, IFC has supported 125 financial partners
through 135 sustainability and climate projects in 37 countries, providing
US$4.5 billion in financing that has helped reduce greenhouse gas emissions
by over 25 million tons.
About the IFC-Canada Climate Change
The IFC-Canada Climate Change Program promotes private sector financing
for clean energy projects and received funding under Canada’s fast-start
financing to catalyze investments in renewable, low-carbon technologies
that would not otherwise happen. The Government of Canada is committed
to support climate change action and will deliver $2.65 billion between
2015 and 2020 to support developing countries’ transition to low carbon
economies and adapt to the impacts of climate change. For more information
on Canada’s investment in global climate change action, visit http://climatechange.gc.ca/finance
IFC, a member of the World Bank Group,
is the largest global development institution focused on the private sector
in emerging markets. Working with more than 2,000 businesses worldwide,
we use our capital, expertise, and influence to create opportunity where
it’s needed most. In FY15, our long-term investments in developing countries
rose to nearly US$18 billion, helping the private sector play an essential
role in the global effort to end extreme poverty and boost shared prosperity.
For more information, visit www.ifc.org
Fransabank is the oldest bank in Lebanon.
It was established in 1921 and is registered number one on the list of
banks operating in the country. It operates over 123 branches and has a
regional footprint in the Middle East and Africa, with subsidiaries in
Europe. The bank is one of the leading banks in Lebanon, ranking third
in Total Assets and offering a large product line including retail, corporate,
investment, private and insurance. Fransabank has been partnering for more
than 20 years with prominent banks and international financial institutions.
For more information, visit www.fransabank.com.