50381 - Leb MF Support

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Summary of Investment Information

Project Number

50381

Company Name

Lebanon MF Support Facility

Date SPI Disclosed

Apr 11, 2025

Country

Lebanon

Region

Middle East

Projected Board Date

May 12, 2025

Environmental Category

FI-3 - No Impact

Status

Active

Last Updated Date

Nov 8, 2025

Department

Regional Industry FIG MCT

Industry

Financial Markets

Previous Events

Approved : Jul 31, 2025
Invested : Nov 6, 2025

Sector

Microfinance and Small Business - Non Commercial Banking

Additional Project Attributes

Blended Finance

Project Description

The investment proposal is for two senior loans totaling US$10 million. A senior loan up to US$5 million to Vitas SAL (Vitas) and a senior loan up to US$5 million to The Lebanese Association for Development - Al Majmoua (Al Majmoua or AM). The investment aims to providing support to the Two MFIs in Lebanon as a response to alleviate the impacts of the economic and humanitarian crisis faced in the country.

Vitas has been a major player in the Lebanese microfinance sector since 1999. Vitas became a Lebanese microfinance service company in 2003 and in 2007 it became registered with the Central Bank of Lebanon. In 2012, Vitas became part of Vitas Group network, an international microfinance institution operating in multiple countries in the region. Vitas provide loans directly to its clients to support individuals and small businesses in aim to fostering long-term development. IFC started its business relationship with Vitas in 2010.

Al Majmoua has been a major player in the Lebanese microfinance sector. It started its operations in 1997 to promote sustainable development by improving the economic and social conditions of low-income individuals, especially micro-entrepreneurs and women. Al Majmoua is an autonomous NGO operating solely in Lebanon. IFC started its business relationship with Al Majmoua in 2014.

Associated Advisory Engagement

IFC is currently exploring an Advisory services engagement with Vitas and Al Majmoua to support on operational efficiency and risk management, among other areas to be explored.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	15.0
Equity

IFC's loan to the financial institution described in this SII is targeted for on-lending to the following sector(s):

Product Type	Use of Proceeds
Straight Senior Loan	Loans to Microfinance

IFC's Definitions of Targeted Sectors can be found here.

Development Impact

The most significant expected project-level outcomes are the increased access to finance for MSMEs in Lebanon, including in regions affected by internal displacements. After a sharp contraction in lending and access to financial services in the country, the projects will seek to increase access to address the financing needs of MSMEs and individuals seeking to support their livelihoods as well as invest in growing, and in many cases re-building their businesses. Beyond the project level outcomes, IFC expects that the Project will contribute towards significant improving the resilience of the microfinance sector in Lebanon by strengthening the liquidity of these institutions and catalyzing investor response in the context of the ongoing crisis.

IFC’s expected additionality in the Project is both financial and non-financial. Financial additionality will be in the form of financing structure as IFC provides a 5-year financing which is not available in the market. Non-financial additionality will take the form of risk mitigation as IFC’s investment will signal confidence in the recovery of the microfinance sector to other investors.

E&S Category Rationale / Risks and Mitigation

The Project consists of financing to Al Majmoua and Vitas, the leading microfinance institutions (MFIs) in Lebanon, to alleviate the impacts of the economic and humanitarian crisis faced in the country. Al Majmoua’s portfolio is primarily concentrated in the services sector (39%), followed by trade (27%) and agriculture (18%). Vitas’ portfolio is concentrated in retail trade sector (48%), followed by services (12%), manufacturing (10%), and construction (8%). Both MFIs do not currently have exposure to coal-related projects or activities on the IFC Exclusion List. Overall E&S risks associated with the Project are low, with minimal or no adverse environmental or social impacts. Therefore, the Project has been classified as category FI-3.

The Project will not support activities or borrowers involved in coal related or higher-risk business activities that may include: (i) involuntary resettlement; (ii) risk of adverse impacts on indigenous peoples; (iii) significant risks to or impacts on the environment, community health and safety, biodiversity, cultural heritage; or (iv) significant occupational health and safety risks. The main E&S risks and impacts of this Project relate to Al Majmoua and Vitas having adequate systems and capacity in place to manage E&S risks in microloans portfolios in line with the IFC’s applicable E&S requirements. The MFIs will not support activities in IFC's Exclusion List, and will adhere to E&S laws and regulations of Lebanon. Additionally, Al Majmoua and Vitas will be required to maintain alignment with life and fire safety requirements, and the requirements of IFC Performance Standard 2 (PS2) on Labor and Working Conditions.?

Al Majmoua and Vitas have each implemented an environmental and social management system (ESMS) commensurate with the E&S risks associated with the Project.

Al Majmoua has established an ESMS in line with the IFC’s E&S requirements. The ESMS includes clear procedures and defined roles for conducting E&S due diligences and including mitigation measures into loan agreements. It ensures loan screening against the IFC’s Exclusion List and compliance with local regulations. Al Majmoua has a dedicated E&S team led by an E&S officer and supported by two focal points. Al Majmoua’s human resources policies and practices are in line with PS2 requirements.

Vitas has established an ESMS in line with the IFC’s E&S requirements, ensuring loan screening against the IFC’s Exclusion List, compliance with local regulations, and enhanced E&S risk assessment for medium-risk projects. Vitas has appointed an E&S coordinator who oversees the ESMS implementation supported by a compliance officer and a customer relationship specialist both acting as E&S officers. Vitas’ human resources policies and practices are in line with PS2 requirements.

Contacts

For Inquiries About the Project, Contact

Vitas SAL and The Lebanese Association for Development – Al Majmoua
Vitas SAL: Mr. Ziad Halaby, Al Majmoua: Dr. Youssef Fawaz
Vitas SAL : General Manager, Al Majmoua: Executive Director
Vitas SAL: +961 5 959859, Al Majmoua: +961 1 369269

Vitas SAL: Hazmieh Baabda, Mount Lebanon, Al Majmoua: Abdel Kader Street, Beirut
Vitas: www.vitaslebanon.com , Al Majmoua: www.almajmoua.org

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Fax: 202-974-4384

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This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. It also includes findings and recommendations related to environmental and social considerations regarding this potential investment. The purpose of the SII is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this SII is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein. It is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following SII is disclosed in accordance with IFC's Access to Information Policy (AIP) that went into effect on January 1, 2012.

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

Indicator	Metrics	Comments
Number of outstanding loans, Microenterprises	#
Number of outstanding loans, women-led Microenterprises	#
Number of outstanding loans, individuals	#
Number of outstanding loans, women	#

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