Fimbank doubles stake in Lebanese factoring joint venture

Fimbank plc, the Malta-headquartered trade finance bank, has increased its investment in its Beirut-based factoring joint venture.

The bank acquired 25 per cent of LCI Factors S.A.L. in 2008. Its stake in this company, which has been renamed Levant Factors, has now increased to 50 per cent.

The bank’s partner in this joint venture is Lebanese Credit Insurer, recently ranked one of the fastest growing Lebanese companies by the AllWorld Network. It is a joint venture between Atradius Re, the world’s second largest credit insurer, and a group of regional insurance companies and investors.

Fimbank president Margrith Lütschg-Emmenegger said: “We are very satisfied with the increase in business registered by our Lebanese factoring joint venture and delighted to have been given the opportunity to increase our equity stake. A resolution was passed to change the company name to Levant Factors to better reflect the JV’s target markets, namely the Eastern Mediterranean states, which have great potential for our factoring products.”

LCI managing director Karim A. Nasrallah stressed how in a changing global economic environment, business must understand prevailing trends and seriously consider alternative methods of finance such as factoring, particularly if they can protect their financial viability and the achievement of their growth objectives.

Mr Nasrallah explained Levant Factors will continue to provide innovative trade finance solutions to small and medium-sized companies in the region.