The International Finance Corporation has signed an agreement to lend US$10 million to Lebanese Leasing Company (LLC), a Beirut-based leasing company that provides much-needed term finance to small and medium enterprises (SMEs), helping them acquire the machines and equipment necessary for business growth.
LLC is a successful leasing company providing SMEs with a flexible alternative to traditional bank financing. Since its inception in 1995, LLC has provided more than $60 million of lease finance to 200 SMEs.
Sami Haddad, IFC Director for Middle East and North Africa, said that the investment is in line with IFC’s global strategy of strengthening local financial institutions and providing long-term financing for SMEs. He added that facilitating access to term finance for SMEs is a major objective of IFC’s strategy in Lebanon.
LLC is a joint venture owned by Fransabank (Lebanon), Ucabail SA (France), DEG (German Investment and Development Company), and IFC. In 1995, IFC participated in the initial investment that created LLC and, in 1998, joined in the second round of funding to assist the Company’s expansion.
This latest investment, to be signed on March 23 by Sami Haddad and Adel Kassar, chairman of LLC, will strengthen the long-term funding base of LLC and enhance its role in financing SMEs.
The mission of IFC, part of the World Bank Group, is to promote sustainable private sector investment in developing countries, which will reduce poverty and improve people's lives. IFC fosters economic growth by financing private sector investments, mobilizing capital in the international financial markets, and providing technical assistance and advice to governments and businesses.
