The International Finance Corporation (IFC), a member of the US-based World Bank Group, and Agence Française de Développement (AFD), the international development arm of the French government, recently launched the Middle East and North Africa (MENA) SME Risk Sharing Facility, through which the organizations will guarantee loans for small and medium-sized enterprises (SMEs), 20 percent of which are to be issued to enterprises owned and operated by women. Through its first deal, the facility will guarantee USD 5 million in SME loans extended by BLC Bank of Lebanon, formerly known as Banque Libanaise pour le Commerce. This commitment is expected to stimulate USD 10 million in SME financing, which AFD’s Country Director of Lebanon Lionel Cafferini describes as “part of a long-term push to create a sustainable banking industry and strengthen Lebanon’s private sector.”
The MENA SME Risk Sharing Facility is also “supported” by the Women Entrepreneurs Opportunity Facility, which was launched in 2014 by the Goldman Sachs 10,000 Women Initiative and IFC. IFC and Goldman have made approximately USD 600 million in commitments to banks in 17 countries through the Women Entrepreneurs Opportunity Facility since its inception. Lisa MacDougall, Global Head of Goldman Sachs 10,000 Women was quoted as saying that “this commitment to BLC Bank will place more capital in the hands of women entrepreneurs in Lebanon who will drive future economic growth and job creation.” Launched in 2008, the 10,000 Women Initiative aims to provide 10,000 “underserved” women with a business and management education, financial advisory and access to capital.
As of 2016, IFC has 184 member countries and reports total assets of USD 90.4 billion. In 2015, AFD earmarked EUR 8.3 billion (USD 9 billion) for development projects, and as of December 31, 2015, it reports total assets of EUR 35.8 billion (approximately USD 40.1 billion). As of June 30, 2016, Goldman Sachs reports unaudited total assets of USD 439 billion. As of June 30, 2016, BLC Bank, which is a unit of the Lebanon-based Fransabank Group, reports unaudited total assets of USD 5.54 billion.
By Michelle Dold, Research Associate
About International Finance Corporation (IFC)
The International Finance Corporation (IFC), a member of the US-based World Bank Group, offers loans, equity investments, technical assistance, and advisory and risk mitigation services to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2016, IFC has 184 member countries that drive its policies and approve disbursements, and it reported total assets of USD 90.4 billion.
About Agence Française de Développement (AFD)
Established in 1941, Agence Française de Développement (AFD) is the operator of a bilateral development finance institution that seeks to implement the overseas development assistance policies of the French government. Through its private-sector financing arm, Proparco, AFD finances projects in approximately 90 countries in four continents. In 2015, AFD earmarked EUR 8.3 billion (USD 9 billion) for development projects. As of December 31, 2015, AFD reports total assets of EUR 35.8 billion (approximately USD 40.1 billion).
About Goldman, Sachs and Co.
The Goldman, Sachs and Co. is a US-based financial institution offering investment banking, investment management and financial advisory services to corporations, financial institutions, governments and retail clients. Founded in 1869, the firm is headquartered in New York and maintains offices in 36 countries. As of June 30, 2016, it reports unaudited total assets of USD 439 billion.
About BLC Bank SAL
Bank Société Anonyme Libanaise (BLC) SAL, formerly known as Banque Libanaise pour le Commerce, is a publicly traded bank based in Beruit, Lebanon, and a subsidiary of the Lebanon-based Fransabank Group. BLC provides credit, savings, insurance and fund transfer products and services to corporate and retail banking clients through its 42 branches in Lebanon. In 2012, BLC launched a Women Empowerment initiative to provide financial products and advisory services to female borrowers. As of June 30, 2016, BLC Bank reports unaudited total assets of USD 5.54 billion. As of December 31, 2015, Fransabank reports total assets of USD 20 billion.
Sources and Additional Information:
[2] MicroCapital Universe: International Finance Corporation (IFC)
[3] MicroCapital Universe: Agence Française de Développement (AFD)
[4] MicroCapital Universe: Goldman Sachs Group
[5] MicroCapital Universe: BLC Bank
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