IFC, a member of the World Bank Group, with the support of the government of Canada, is helping Fransabank Group extend financial support to businesses and households so they can adopt clean energy and energy efficient technology, save money, and combat climate change.
This is IFC’s first investment to promote the financing of sustainable energy technology in Lebanon. IFC will provide a combined financial package of $13 million to Fransabank SAL and its leasing arm, the Lebanese Leasing Company (LLC). The package includes up to $4.5 million from the IFC-Canada Climate Change Program.
The package will help Fransabank scale up its lending operations to companies and households keen to purchase green technology, while LLC will focus on leasing equipment to small and medium businesses. This will boost private sector investment in clean energy and increase competitiveness by reducing costs and improving productivity.
“The introduction of sustainable energy finance into our SME, corporate, and leasing activities is part of our Go Green Strategy,” said Adnan Kassar, Chairman of Fransabank Group. “It will allow us to expand our market share through new business lines, target new market segments, improve the risk profile of our portfolio, and enhance our social and environmental image.’’
IFC will also provide specialist advice to build the capacity of Fransabank and LLC, to develop sustainable energy financing operations that target a range of clientele, including small and medium businesses.
The government of Canada's instrumental contribution to the IFC-Canada Climate Change Program has helped make this financing package viable. In total, Canada has provided $276.6 million to the program, to enable climate change investments that generate environmental and economic benefits in developing countries.
“Climate change and diminishing energy resources represent global challenges to economic development,” said K. Aftab Ahmed, IFC Director for Financial Institutions and Private Equity Group, Europe, Central Asia and the Middle East and North Africa. “By extending our long-term partnership with Fransabank, we are giving businesses the chance to embrace renewable energy, invest in the future of Lebanon, and reduce the effects of climate change.”
The initiative, financed by IFC and the government of Canada, is part of IFC’s Sustainable Energy Finance Program, which aims to strengthen the capacity of banks and financial institutions to extend sustainable energy financing to the private sector.