International Finance Corporation, a member of the World Bank Group, provided a $7 million loan to the Lebanese Leasing Company SAL, the leasing arm of Fransabank Group. The loan will help Lebanon’s largest leasing company provide lending to businesses to boost the adoption of energy-efficient technology, thus contributing to climate change mitigation, according to a statement by the bank.The loan includes $3.5 million from IFC’s own account and another $3.5 million from the IFC-Canada Climate Change Program. This is the third IFC loan for Sustainable Energy Finance, after two loans for $10 million to Fransabank and $3 million to LLC, both granted in May 2014 and fully utilized.
The new loan will help LLC strengthen its SEF lending program and channel funding to high-impact renewable energy and energy efficiency leasing projects. The investment is also expected to help reduce greenhouse gas emissions in Lebanon which have increased by over 27 percent (11,445 tons) since 1994.
“The investment from IFC and Canada will help us increase our support to small businesses seeking to invest in clean energy, reaching out to more of them while mitigating climate change and supporting clean energy technologies,” said Adel Kassar, chairman of LLC.
“One of the key challenges Lebanon is facing is an energy shortage, which impacts the productivity of the country’s private sector. Supporting investments in energy efficiency and renewable energy is key to helping Lebanese businesses secure a sustainable future and reduce expensive energy costs,” said Mouayed Makhlouf, IFC Regional Director in the Middle East and North Africa.
The announcement was made in the presence of Marco BRUJIS, Global Industry Director of IFC.