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FEMIP to become a cornerstone
investor in a new private equity initiative for SMEs in
Lebanon
Philippe de Fontaine Vive, Vice
President of the European Investment Bank (EIB) in
charge of the Facility for Euro-Mediterranean Investment
and Partnership (FEMIP) today visited Beirut to prepare
FEMIP’s contribution to the International Conference for
support to Lebanon to be held in Paris on 25 January. He
signed a commitment agreement that will help create a
new investment company, Byblos Ventures, dedicated
mainly to Small & Medium sized Enterprises (SMEs) in
Lebanon.
The commitment is for a FEMIP participation of up to EUR
7.5 million in Byblos Ventures s.a.l. (Holding), an
investment company for the Lebanese private sector and,
to a limited extent, for companies located in Jordan,
Syria, and Egypt. Byblos Ventures will support small &
medium sized equity and quasi-equity investments. The
Byblos Bank group and other institutional investors will
co-invest alongside FEMIP, allowing the company to reach
its initial target size of USD 20 million (EUR 15
million) in the next few months.
Byblos Ventures brings together the financing and
know-how of FEMIP in terms of private sector financing
in Mediterranean Partner Countries with the strength of
a prime Lebanese banking partner with a successful track
record in SME financing.
EIB’s participation comes together with technical
assistance to encourage the application of best industry
practice and to help attract other international
investors.
This operation is part of FEMIP’s strategy of giving
priority to private sector financing in its operations.
It follows the signature in 2006 of a private equity
fund based in Beirut and complements the EUR 110 million
of long-term loans provided to Lebanese SMEs via the
Lebanese banking sector under three lines of credit.
In addition, FEMIP’s substantial support for private
sector activity in Lebanon will be further stepped up. A
new EUR 60 million line of credit will provide long term
financing for SME investment projects in industry,
agro-industry, IT, services, health and education. It
will be channelled through 14 top-tier banks in Lebanon.
On top of this, last month EIB approved a special EUR
100 million facility that targets the reconstruction and
recovery of SMEs whose businesses were affected by the
recent conflict. This facility will enjoy special
financing conditions tailored to the needs of damaged
firms and is expected to be signed shortly.
The EIB will play an important role in joining the
efforts of the international community to assist the
Lebanese government’s reconstruction, recovery and
reform set out in the programme for the upcoming Paris
Conference on support for Lebanon. EIB involvement aims
at supporting structural reform, particularly for
investments in the power sector, and in major
infrastructure projects - transport and energy -
especially those with private sector participation.
Mr. De Fontaine Vive commented “As a longstanding
partner of Lebanon, with financial cooperation going
back 30 years, the European Investment Bank stands ready
to continue its commitment to the country at this
difficult time by supporting the reconstruction and
recovery process and underpinning the Lebanese
government’s reform agenda. Byblos Ventures will
contribute to ease financing constraints that exist for
promising private-sector small and medium sized
enterprises (SMEs). Providing risk capital will also
help develop an important missing component of the local
financial sector”. |
