Summary of Proposed Investment
Project Number
9093
Company Name
LEBANESE LEASING COMPANY SAL
Date SPI Disclosed
Aug 19, 1998
Country
Lebanon
Industry
Financial Markets
Status
Completed
Sector
Leasing Services
Department
Global Industry, Financial Markets
Environmental Category
FI
Previous Events
Approved : Dec 9, 1998
Signed : Jan 28, 1999
Invested : Mar 1, 1999
Project Description
Summary Of Project Information (SPI)
| Project Name | Lebanon-LLC/Lebanese Leasing Company SAL |
| Region | Central Asia, Middle East and North Africa |
| Sector |
Projected Board DateNovember 24, 1998
Company NameLebanese Leasing Company
Technical Partner and/or Major Shareholders
Technical Partner - Ucabail S.A. (25%), the holding company of Crédit Agricole''s (France) leasing activities. Local Sponsor - Fransabank SAL (45%). Other sponsors - IFC (15%) and DEG - Deutsche Investitions - und Entwicklungsgesellschaft mbH (15%).
Project Cost Including proposed IFC investment
IFC will provide a term loan of US$2.0 million and syndicate US$3.33 million through Crédit Agricole, the only participant and LLC''s technical partner. In addition, Fransabank, LLC''s local partner, will co-lend US$3.33 million to the Company on similar terms and conditions to the IFC Loans.
Location of project and Description of site
Beirut, Lebanese Republic
Description of Company and Purpose of Project
The project involves the extension of a second line of credit to Lebanese Leasing Company (LLC), an IFC investee company established in 1995. IFC''s participation in the initial funding package (equity investment of US$750,000(15%)and a loan of US$7.5 million)has provided the Company with a base of long-term funds and has prompted local and foreign financial institutions to finance the Company. In its first three years of existence, LLC managed to post growing revenues while maintaning good portfolio quality as a result of conservative management policy. Today, the Company has proven to be a successful "model" leasing company providing small and medium enterprises with a flexible financing mechanism. LLC will use the proposed credit line to replenish its funding and continue addressing the fundamental need for medium to long-term financing through the provision of lease finance to the productive sectors of the economy.
Environmental Category and Issues
This is a Financial Intermediary, tier 1 category project according to IFC''s environmental procedure. LLC will be required to implement an environmental management system to ensure that leased assets comply with host country environmental, health and safety requirements. In addition, LLC will be required to submit an annual environmental performance report briefly describing the performance of its environmental management system.
| Date SPI sent to PIC | November 11, 1998 |
“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”
For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 974-4384
Sponsor / Cost / Location
Related ESRS/ERS
