FRANSABANK, represented by its Deputy Chairman Mr. Adel Kassar, signed with PROPARCO - a subsidiary of the French Development Agency - represented by its General Manager Mr. Luc Rigouzzo, an agreement for a 10-year subordinated loan for USD 21.14 million. As a result, FRANSABANK’s shareholders’ equity surpass now USD 1 billion, with total assets of more than USD 10.8 billion and net profits amounting to USD 102.4 million in 2009.
The loan is characterized by its nature and signifies a further consolidation of the strategic alliance tying FRANSABANK to PROPARCO, which is entrenched in FRANSABANK Group’s strategy to expand its business locally, regionally and internationally on the one hand, and in PROPARCO’s mission to stimulate investments of the private sector in developing countries with a view to achieve sustainable development in those markets on the other.
In this context, Kassar announced “our relationship with PROPARCO extends back to several years, and we are always working together to identify means for mutual cooperation in several areas and this to keep pace with our customers’ businesses”.
Rigouzzo in turn asserted PROPARCO’s interest to "accompany FRANSABANK in its projects targeting development and growth in emerging countries in which FRANSABANK has a well-rooted presence and experience".
Moreover, both Kassar and Rigouzzo confirmed the two Groups’ intention to study joint projects and explore new business opportunities, having in perspective to contribute to the development of the Middle East and Africa region, setting-up for that purpose proper funding structures.
FRANSABANK Group is one of the largest banks on the local and regional levels. It offers a full range of banking products and services to individuals and corporations. The Group began its expansion strategy in the eighties with FRANSABANK France marking its first external set-up back in 1985. Today FRANSABANK Group is well established in Algeria through FRANSABANK El Djazaïr SPA, in Syria through FRANSABANK Syria SA, in Sudan through United Capital Bank, and in Belarus through FRANSABANK OJSC. It is as well ranked first in terms of local branch network with over 100 branches dispersed in all the Lebanese regions.
PROPARCO was founded in 1997 as a subsidiary of the French Development Agency (AFD). PROPARCO’s main objective is to stimulate investments by the private sector in developing countries in order to achieve growth and sustainable development in those markets. PROPARCO’s investments cover a geographical area stretching from the major emerging countries to the poorest ones, particularly in Africa via a wide range of financial instruments to meet the specific needs of investors. During 2008, PROPARCO granted over EURO 789 million to more than fifty projects in more than thirty countries around the world.