Summary of Proposed Investment
Project Number
10179
Company Name
THE LEBANESE CREDIT INSURER SAL
Date SPI Disclosed
May 4, 2000
Country
Lebanon
Industry
Financial Markets
Projected Board Date
Jun 5, 2000
Status
Completed
Sector
Other Non-Depository Credit
Department
Regional Industry FIG MCT
Environmental Category
C - No Impact
Previous Events
Approved : Jun 6, 2000
Signed : Nov 10, 2000
Invested : Dec 15, 2000
Project Description
LCI will be the first stand-alone credit insurance company in Lebanon. LCI will initially provide both short- and medium-term credit insurance, but will in the long run focus on the short-term business. The short-term business encompasses insuring individual companies'' accounts receivables, mainly short-term domestic and export trade credit. The medium-term business involves the insurance of payment defaults of individual debtors benefiting from consumer credit, such as car financing facilities.
LCI has a strong development impact as it is intended to fill an important institutional gap in Lebanon’s financial sector by setting up the first specialized credit insurance company. LCI will provide Lebanese SMEs with (i) a new mechanism for managing an important asset risk and (ii) a cheaper financing alternative through insurance coverage on their trade credit. IFC had been working closely with Gerling Namur on the establishment of the first credit insurance company in Lebanon for over two years. IFC’s presence is pivotal for Gerling Namur’s participation, for attracting the local partners, and for the Government’s consent to approve the issuance of a new specialized license. IFC is playing a central role in advising the sponsors on deal structuring issues, including the drafting of a strong Joint-Venture Agreement and Operational Policy Statement.
LCI has a strong development impact as it is intended to fill an important institutional gap in Lebanon’s financial sector by setting up the first specialized credit insurance company. LCI will provide Lebanese SMEs with (i) a new mechanism for managing an important asset risk and (ii) a cheaper financing alternative through insurance coverage on their trade credit. IFC had been working closely with Gerling Namur on the establishment of the first credit insurance company in Lebanon for over two years. IFC’s presence is pivotal for Gerling Namur’s participation, for attracting the local partners, and for the Government’s consent to approve the issuance of a new specialized license. IFC is playing a central role in advising the sponsors on deal structuring issues, including the drafting of a strong Joint-Venture Agreement and Operational Policy Statement.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
Mr. Karim A. Nasrallah
11 Rue Gergi Zeidan, Achrafieh, Beirut
B.P. 11 66 19, Beirut, Lebanon
11 Rue Gergi Zeidan, Achrafieh, Beirut
B.P. 11 66 19, Beirut, Lebanon