The Bank is listed on the Beirut Stock Exchange and has a diversified shareholding structure, with the members of the founding Bassil family collectively owning a controlling stake in BYB. The remainder is held among 5,000 notable Lebanese businessmen and companies.

The proposed investment is expected to be made by the IFC Capitalization (Equity) Fund, L.P. and IFC Capitalization (Subordinated Debt) Fund, L.P. sponsored by IFC (the “Fund”). In the event the proposed investment (or a portion thereof) is not made by the Fund, IFC may make the investment (or a portion thereof) directly. The Project is aimed to support the Bank’s strategic development programs through establishment of a long-term partnership with the Bank. The total investment of $150 million comprises an equity, subordinated loan, and share option components.

100.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	100.0

* These investment figures are indicative

BYB is headquartered in Beirut and also operates through its consolidated affiliated banks, subsidiaries, representative offices, and branches in Cyprus, Luxemburg, UK, France, Syria, Sudan, Iraq, Armenia, Nigeria, and UAE.

The Project is expected to have a high development impact. It will:

-help the Bank to expand its financial services and products to SMEs and retail clients in Lebanon and other countries of the Bank’s existing and future presence;
-strengthen the capital base and adequacy of the Bank and demonstrate the ability of a Lebanese bank to attract investments from international institutional investors in a difficult financial environment;
-advance capacity and institution building of the Bank to transform the Bank into a leading regional player with best practices in business strategy, risk management, and corporate governance; and
-improve the Bank''s capacity in social and environmental risk management.

The Project will have a strong development contribution. It will:

-offer BYB a long term partnership key for the Bank to grow in a country affected by the knock-on effects of the global financial crisis;
-secure long-term capital funding to the Bank given lack of viable term funding alternatives in the currently frozen capital markets;
-create a strong demonstration effect for investors to engage with the private sector of Lebanon, characterized by limited access to long term finance; and
-facilitate the consolidation of the MENA region banking sector, critical for financial stability and intermediation in the region.

The Project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure.

During appraisal, IFC will analyze the Bank''s portfolio, for types of transactions, size, tenor, and industry sectors and determine the Applicable Performance Requirements, if any, that would include a combination of: (i) The IFC Exclusion List(s); (ii) The applicable National Social and Environmental Laws and regulations; (iii) The IFC Performance Standards. IFC will also appraise the Bank''s labor practices according to the IFC’s Performance Standards 2: Labor and Working Conditions.

Based on the review, the Bank will be required to: (i) Upgrade, if necessary, the existing SEMS, prior to disbursement to the satisfaction of IFC; (ii) Continue to retain responsible, qualified persons to manage and implement the SEMS; (iii) Commit to implement the SEMS, to ensure that its investments/activities are in compliance with the Applicable Performance Requirements; (iv) Demonstrate commitment to applying the labor standards established by the IFC Performance Standard 2: Labor and Working Conditions; (v) Continue to submit a periodic report to IFC as per a format to be provided by IFC.