Lebanese Leasing Company Credit Line 3

completed

As of June 30, 2000 and since inception, LLC has provided about US$54 million of lease finance to 196 SMEs. LLC has growing revenues while maintaining a healthy portfolio as a result of prudent management policies. Today, LLC has proven to be a successful "model" leasing company providing SMEs with much needed alternative and flexible financing mechanism to traditional bank financing. In addition to obtaining medium and long term loans from its shareholders, LLC has succeeded in borrowing US$3 million from ABN AMRO, an unrelated bank. Having already utilized the first two lines of credit extended by IFC and other funding packages extended by its other shareholders and other lenders, LLC is now looking for additional funding, with the view to accessing other sources, such as the capital markets, in the future. IFC''s role: developing the Lebanese financial sector and addressing term funding needs for SMEs are a major part of IFC''s strategy in Lebanon. In addition to supporting a successful institution-building initiative, the new credit line will also strengthen the long-term funding base of LLC. IFC''s third credit line will help support LLC''s expansion, as leasing is developing into an important source of funding for SMEs.Development impact: LLC, the first leasing company, has been an IFC investee company since 1995. IFC''s participation in the initial and second funding packages have provided the company with a base of long-term funds and has prompted local and foreign financial institutions to finance the company. LLC has proven to be a successful company providing SMEs with flexible financing mechanism. Having already utilized the second credit line of IFC, LLC is looking for additional funding, with the view to accessing the capital markets for future needs.