Project detail - FRANSABANK S.A.L.

FRANSABANK S.A.L.

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Who is our client

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.

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 we fund this project

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.

Environmental and social 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 client
http://www.fransabank.com
Region
Asia
Country
Lebanon
Sector
Financial Institutions
Signing date
5/12/2017
Total FMO financing
USD 15.00 MLN
Fund
FMO
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