Beirut, Lebanon, February 10, 2016—IFC,
a member of the World Bank Group, with the support of the Government of
Canada, will help Lebanon’s largest leasing company provide lending to
businesses to boost the adoption of energy-efficient technology, thus contributing
to climate change mitigation.
IFC will provide a US $7 million loan to the Lebanese Leasing Company SAL
(LLC), the leasing arm of Fransabank Group. The loan includes US $3.5 million
from IFC’s own account and another US $3.5 million from the IFC-Canada
Climate Change Program. This is the third IFC loan for Sustainable
Energy Finance (SEF), after two loans for US $10 million to Fransabank
SAL and US $3 million to LLC, both granted in May 2014 and fully utilized.
The new loan will help LLC strengthen its SEF lending program and channel
funding to high-impact renewable energy and energy efficiency leasing projects.
The investment is also expected to help reduce greenhouse gas emissions
in Lebanon, which have increased by over 27 percent (11,445 tons) since
“The investment from IFC and Canada will help us increase our support
to small businesses seeking to invest in clean energy, reaching out to
more of them while mitigating climate change and supporting clean energy
technologies,” said Adel Kassar, Chairman of LLC.
The investment is part of IFC’s strategy to support investments that address
climate change mitigation through financial institutions helping borrowers
reduce risk, lower operating costs and become more resilient to the impact
of climate change. IFC works with Lebanese banks and leasing companies
to help scale up energy efficiency projects and SEF in order to reduce
greenhouse gas emissions and promote sustainable development.
“One of the key challenges Lebanon is facing is an energy shortage, which
impacts the productivity of the country’s private sector. Supporting investments
in energy efficiency and renewable energy is key to helping Lebanese businesses
secure a sustainable future and reduce expensive energy costs,” said Mouayed
Makhlouf, IFC Regional Director in the Middle East and North Africa.
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 close to $292 million Canadian dollars to the program, to
enable climate change investments that generate environmental and economic
benefits in developing countries.
“Climate change is a problem that impacts us all, and Canada is committed
to providing leadership and working with its international partners to
help us move towards a sustainable and resilient world,” said the Honourable
Catherine McKenna, Canada's Minister of Environment and Climate Change.
The initiative is part of IFC’s Sustainable Energy Finance Program, which
aims to strengthen 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 over 25 million tons of greenhouse gas emissions.
About the IFC-Canada Climate Change Program
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.
Canada’s Investment in Global Climate Change Action
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, 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 $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,
The Lebanese Leasing Company SAL is the leading leasing company
in Lebanon. It was established in 1995. It is owned by Fransabank SAL (87.5
percent), one of the top banks in Lebanon, with the remaining 12.5 percent
held by the German Investment and Development Corporation (DEG), a wholly-owned
subsidiary of KfW, the German Government owned Development Bank.