The new glass container manufacturing facility will create 620 jobs in a rural area of Lebanon
Image: European Investment Bank Luxembourg. Photo: courtesy of Palauenc05.
The European Investment Bank (EIB) has granted a $24m (£19.5m) loan to Lebanon’s banking group Fransabank SAL to finance the new glass container manufacturing facility in the country.
Fransabank has signed a financing agreement with EIB to support the construction of a Greenfield glass container manufacturing plant in Lebanon.
Funding for new glass container manufacturing plant in Lebanon
The EIB financing forms part of the bank’s Economic Resilience Initiative (ERI).
The new glass container manufacturing facility is expected to create 620 jobs in a rural area of Lebanon and will help the diversification of the economy towards manufacturing in the region.
EIB vice president Dario Scannapieco said: “The project will restore the former glass container production industry, a key part of the Lebanese agro-industry value chain. It will reduce reliance on imports and strengthen local production.
“The EIB is pleased to support this landmark project, together with Fransabank SAL, its local banking partner.”
The project is in line with the EIB’s pledge of €800m (£710m) announced during the Cèdre Conference in Paris to improve the economy of the country.
The European Union’s bank is supporting the Lebanese private sector by investing in required infrastructure projects and improving companies access to finance.
Fransabank SAL deputy chairman Adel Kassar said: “Supporting Lebanese enterprises, particularly the Glasspack project, through improved access to long-term finance at favourable conditions falls within our core strategy to actively contribute to the development of the private sector in Lebanon and the increase of employment opportunities.”
Approved by the EU Member States in 2016, the EIB’s Economic Resilience Initiative (ERI) includes an integrated package of loans, concessional finance and innovative instruments to help finance an additional EUR €15bn (£13.3bn) of investments on top of schemes already planned.
In December 2018, Moldova-based Glass Container Company (GCC) secured €17m (£13.8m) financing to upgrade its existing production facilities.
GCC received financing from the European Bank of Reconstruction and Development (EBRD) and Mobiabanca – Groupe Société Générale under European Investment Bank’s Filière du Vin project.