Leb MF Support (IFC-50381)

Regions
  • Middle East and North Africa
Geographic location where the impacts of the investment may be experienced.
Countries
  • Lebanon
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
C
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
May 12, 2025
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Vitas SAL (Vitas), The Lebanese Association for Development - Al Majmoua
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
  • Industry and Trade
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 10.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Loan Amount (USD)
$ 10.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 10.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Apr 15, 2025

Disclosed by Bank Apr 11, 2025

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the IFC, the investment proposal is for two senior loans totaling US$10 million. A senior loan up to US$5 million to Vitas SAL (Vitas) and a senior loan up to US$5 million to The Lebanese Association for Development - Al Majmoua (Al Majmoua or AM). The investment aims to providing support to the Two MFIs in Lebanon as a response to alleviate the impacts of the economic and humanitarian crisis faced in the country. Vitas has been a major player in the Lebanese microfinance sector since 1999.

IFC is currently exploring an Advisory services engagement with Vitas and Al Majmoua to support on operational efficiency and risk management, among other areas to be explored.

Al Majmoua’s portfolio is primarily concentrated in the services sector (39%), followed by trade (27%) and agriculture (18%). Vitas’ portfolio is concentrated in retail trade sector (48%), followed by services (12%), manufacturing (10%), and construction (8%).

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

As stated by the IFC, Vitas became a Lebanese microfinance service company in 2003 and in 2007 it became registered with the Central Bank of Lebanon. In 2012, Vitas became part of Vitas Group network, an international microfinance institution operating in multiple countries in the region. Vitas provide loans directly to its clients to support individuals and small businesses in aim to fostering long-term development. IFC started its business relationship with Vitas in 2010. 

Vitas is 51% owned by CHF Development Finance International (wholly owned by Global Communities), a US-incorporated non-profit organization, and 49% owned by Saradar Bank, a Lebanon-incorporated bank.

Al Majmoua has been a major player in the Lebanese microfinance sector. It started its operations in 1997 to promote sustainable development by improving the economic and social conditions of low-income individuals, especially micro-entrepreneurs and women. Al Majmoua is an autonomous NGO operating solely in Lebanon. IFC started its business relationship with Al Majmoua in 2014.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
Global Communities Parent Company Finance owns Vitas Group Subsidiary Finance
Saradar Bank SAL Parent Company Finance invests in Vitas Group Subsidiary Finance

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Address: 2121 Pennsylvania Avenue, NW, Washington DC 20433
Telephone: +1 202-473-3800
Fax: +1 202-974-4384

Financial Intermediaries - Vitas SAL and The Lebanese Association for Development – Al Majmoua:

Vitas SAL: Mr. Ziad Halaby - General Manager
Al Majmoua: Dr. Youssef Fawaz - Executive Director

Phone -
Vitas SAL: +961 5 959859
Al Majmoua: +961 1 369269

Address -
Vitas SAL: Hazmieh Baabda, Mount Lebanon
Al Majmoua: Abdel Kader Street, Beirut

Website -
Vitas: www.vitaslebanon.com
Al Majmoua: www.almajmoua.org 

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org

How it works

How it works