Since 1997, the Bank was acquired by Capital Investment Holding (Manama – Bahrain) and Capital Investment Holding (Lebanon) SAL, both entities principally controlled by the Bin Mahfouz family; founders and former principal shareholders of National Commercial Bank in the Kingdom of Saudi Arabia.

Total project cost is estimated up to $80 million including corporate credit line, risk sharing facility, and trade line.

40.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee	25.0
Loan	15.0
Equity

* These investment figures are indicative

Headquartered in Achrafieh, Beirut-Lebanon, Credit Libanais has a well recognized franchise and offers a wide range of retail and corporate banking services across the country.

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

- Support for the private sector lending to SMEs and corporate clients:

SMEs and corporate clients make up a large share of Lebanon’s economic output and provide vital contributions to employment generation in impoverished areas.
Increased access to finance in these target markets can help re-boost under-funded enterprises.

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, Credit Libanais will be required to:

- Develop a Social and Environmental Management System (SEMS) 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.