IFC, a member of the World Bank Group, has signed an agreement to provide subordinated loans of $150 million for 10 years to leading Lebanese bank Bank Audi.

The deal was signed in co-ordiantion with the IFC Capitalization Fund, managed by the IFC Asset Management Company.

The loans will help Bank Audi expand its capital base and support the regional growth plans, strengthening economic integration between developing economies and creating jobs.

Bank Audi is seeking to solidify its position as the leading bank in Lebanon while scaling up its lending operations in neighbouring economies, such as Turkey and Egypt, thereby stimulating cross-border investment and trade activity across the region, said a senior official.

“Bank Audi is very pleased to strengthen its partnership with IFC and the IFC Capitalization Fund. This investment in Lebanon is a positive sign for the country’s resilience and the region’s growth potential, and highlights the opportunities for sustainable investments, even in these difficult times,” remarked its group CEO Samir Hanna.

“This partnership with IFC will also help us strengthen our regional banking platform, in particular with regard to expanding financial access to underserved segments, such as small and medium enterprises,” he added.

Mouayed Makhlouf, the IFC director for the Mena region, said this new investment will support the Lebanese bank in its expansion plans, thereby increasing critical trade flows and investment within the region.

Marcos Brujis, the head of the IFC Capitalization Fund, said: "This is our first investment in Lebanon and we are very pleased to provide capital to Bank Audi as it expands its footprint across the Mena region and Turkey.”

A cornerstone of IFC’s strategy in the Mena region is to support the growth of South-South investments in order to stimulate economic development.

In December last year, IFC had provided a $75 million financing package to Odeabank in Turkey, a fully owned subsidiary of Bank Audi.-TradeArabia News Service