The project sponsor is BLOM. The main shareholder of BLOM is Bank of New York with 34.4% as a depository for GDRs. The remaining shareholders of the Bank are: Banorabe Holding (11.4%), AZA Holding (9.3%), Shaker Family (5.4%), Mrs. Nada Oueini (5%), Others – less than 5% each (34.5%).

Total project cost is estimated up to $100 million, which will be covered under the proposed IFC investment of the said amount of A loan for IFC’s own account.

80.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	80.0
Equity

* These investment figures are indicative

The Bank’s headquarter is in Beirut, Lebanon. The Bank also has regional presence through its subsidiaries and branches in Syria, the United Arab Emirates, Jordan and Egypt as well as in Europe (Paris, London, Geneva, Cyprus and Romania). In total, BLOM has 76 branches and employs about 1,500 staff.

- 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 rates. The proposed IFC investment should help maintain and/or increase bank lending to these groups, maintaining the economic well being of the underlying communities/stakeholders.

- Support for the private sector lending including SMEs and corporate clients

SMEs and corporate clients make up a large share of Lebanon’s economic output and including vital contributions such as employment generation in impoverished area. Increased access to finance to these target markets can re-start these currently under funded enterprises.

- Housing Finance

The facility would support the lending for housing finance. It is expected that the banks will provide financing in the form of housing mortgages, which will broaden access to finance for consumers to make affordable home purchase in Lebanon.

IFC will offer investment and mobilizing activities with the near term benefits to enable the private sector companies; helping the economy to restart and avoid economic downturn caused by the conflicts.

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.

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, BLOM will be required to:

- Develop a Social and Environmental Management System (SEMS) prior to disbursement to the satisfaction of IFC and BLOM Bank, 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.