This investment will help Byblos pursue its strategy of becoming a financial group with a broader network of banks and financial institutions in frontier and emerging markets. IFC also plans to further support Byblos by providing trade finance guarantees and strengthen the bank’s corporate governance.
Reportedly, IFC has been active in Lebanon’s financial sector in recent years, providing trade finance lines to a number of banks and investment and advisory services. In fiscal 2009, IFC committed over $184m in trade finance to Lebanese banks.
Francois Bassil, chairman of Byblos Bank, said: “IFC’s investment in Byblos Bank shows IFC’s confidence in the strength of our bank and its management. Byblos Bank enjoys a high capital adequacy ratio, both by Lebanese and international standards, and IFC’s investment will further strengthen our bank’s capital base and allow us to pursue our expansion strategy on solid grounds.”
Michael Essex, director of IFC, Middle East and North Africa, said: “Access to long-term finance for the private sector in Lebanon remains limited. We hope our investment can act as a catalyst to bolster confidence and encourage needed investment in the Lebanese financial sector, which in turn will increase access to finance for individuals and entrepreneurs.”
Byblos Bank is listed on both the Beirut and London stock exchanges. The bank provides retail, commercial, private, international banking, treasury, capital markets and trade finance services.
