The IFC has made a US$100mn equity investment in Lebanon’s Byblos Bank to help increase access to finance for small and medium enterprises. The IFC also plans to further support Byblos by providing trade finance guarantees and helping strengthen the bank’s corporate governance.
With the investment, Byblos will be able to pursue its strategy of becoming a significant financial group, with a broader network of banks and financial institutions in frontier and emerging markets.
“The IFC’s investment in Byblos Bank shows the IFC’s confidence in the strength of our bank and its management,” says Francois Bassil, Byblos Bank chairman. “Byblos Bank enjoys a high capital adequacy ratio, both by Lebanese and international standards, and the IFC’s investment will further strengthen our bank’s capital base and allow us to pursue our expansion strategy on solid grounds.”
Michael Essex, IFC director for the Middle East and North Africa, comments: “Access to long-term finance for the private sector in Lebanon remains limited. We hope our investment can act as a catalyst to bolster confidence and encourage needed investment in the Lebanese financial sector, which in turn will increase access to finance for individuals and entrepreneurs.”
Byblos Bank is the third-largest bank in Lebanon and has 10 overseas locations. It is looking to expand further into markets in the Middle East and in Africa, particularly in frontier regions.
The IFC has been active in Lebanon’s financial sector in recent years, providing trade finance lines to a number of banks and investment and advisory services. In fiscal 2009, IFC committed over US$184mn in trade finance to Lebanese banks.
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