LGB BANK signed a USD 67.5 million funding agreement in collaboration with FMO, OFID and OeEB to support Small and Medium Enterprises, during a ceremony held in the Austrian Capital of Vienna. In addition to the USD 32.5 million provided by The Dutch Development Bank (FMO), OPEC Fund for International Development (OFID) financed USD 20 million and The Development Bank of Austria (OeEB) funded USD 15 million. The total funding will have a tenor of 5 years. FMO has acted as the Mandated Lead Arranger and Facility Agent.
This is the first syndicated transaction in Lebanon and LGB BANK’s first funding received from international DFIs. The transaction increases the availability of funding for Small and Medium Enterprises (SMEs) in Lebanon, representing more than 90% of all formal enterprises in Lebanon. The sector is identified as one of the most underserved markets offering the largest potential in terms of volume and combatting the high unemployment rate. By stimulating investment in the SME segment, the DFIs aim to boost economic and private sector development, and contribute to job creation.
LGB BANK’s Vice-Chairman and CEO Samer Itani commented: “We are proud of the excellent collaboration between FMO, OFID, OeEB and LGB BANK as it proves our Bank’s willingness to enhance key drivers of the Lebanese economy. This syndicated transaction will furthermore strengthen LGB BANK’s position as a leading lender of major SMEs across the country, and will also demonstrate our determination in nurturing business relationships with our international partners. Moreover, this transaction will assist the Bank in enhancing its Corporate Social Responsibility and strengthening its efforts to support its community”.