Project detail - FRANSABANK S.A.L.

FRANSABANK S.A.L.

Status: Completed investment
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Disclaimer

The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.

Who is our customer

Fransabank sal is a private universal bank is the number 4 bank and the oldest financial institution in Lebanon. Throughout the years, the Bank has grown organically as well as through acquisitions of other banks. Fransabank sal is the parent company of Fransabank Group, which predominately operates in the Middle East and North Africa. Headquartered in the capital city Beirut, it has the widest local branch network with 74 branches spread all over the country. The Bank provides a wide range of commercial and retail banking and related financial services. Majority of the clients are Lebanese individuals and private sector companies and, increasingly, foreign companies operating in Lebanon. The Bank also provides specialized financial services through its subsidiaries Fransa Invest Bank SAL, Lebanese Leasing Company SAL, and Bancassurance SAL.

What is our funding objective?

Our Trade Finance Limit supports Fransabank sal in building up a stable client base as it can offer full-range of services to its SME and corporate clients. Besides, it takes away country and counterparty risk, thereby allowing the Bank to start and maintain relationships with international banks.

Why do we fund this investment?

Fransabank sal, as #4 bank of Lebanon by Total Assets, is one of the leading banks with a widespread (inter)national presence, strong corporate governance framework, customer orientation and sound risk management. Given its large network of Lebanese and international subsidiaries, the Bank can become a strong strategic partner of FMO – both as a direct borrower and a co-financier.

What is the Environmental and Social categorization rationale?

This facility has been categorized as Category B in accordance with FMO’s Sustainability Policy. The trade finance activities are deemed to have potential limited adverse environmental and social risks and/or impacts. As part of this facility, Fransabank sal will be required to apply the EDFI Exclusion List and national E&S laws and regulations.

Website customer/investment
http://www.fransabank.com
Region
Asia
Country
Lebanon
Sector
Financial Institutions
Effective date
5/12/2017
End date
4/23/2021
Total FMO financing
USD 15.00 MLN
Funding
FMO NV
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk Environmental & Social Category
(A, B+, B or C)
B