Brussels, 12/01/2007 (Agence Europe) - On 11 January, the European Investment Bank (EIB) signed an agreement with Lebanon creating a new investment company, Byblos Ventures, to support SMEs through “small and medium sized equity and quasi-equity investments”. The agreement was announced on the eve of the international conference for support to Lebanon to be held in Paris on 25 January. It was signed during a visit to Beirut by EIB Vice President Philippe de Fontaine Vive.
With overall funding of 20 million US dollars, €7.5 million of which is the FEMIP (Facility for Euro-Mediterranean Investment and Partnership) contribution, the new company will have a regional responsibility: it is “an investment company for the Lebanese private sector and, to a limited extent, for companies located in Jordan, Syria and Egypt,” says the EIB. For this, 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”.
In 2006, the EIB granted €110 million for the creation of a private equity fund based in Beirut. The EIB, through the FEMIP, intends, too, to increase further its financial support for the Lebanese private sector. It has announced a new €60 million credit line which 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. Last month, the EIB approved a special €100 million facility that targets the reconstruction and recovery of SMEs whose businesses were affected by the recent conflict with Israel. It is expected that this facility will be signed shortly, says the EIB, and will “enjoy special financing conditions tailored to the needs of damaged firms”. Thus, a few days before the Paris conference, the EIB is showing its commitment to helping Lebanon achieve its structural reforms, and to taking an active role in the efforts being deployed by the international community to support the reconstruction, recovery and reform process undertaken by the Lebanese government. (fb)