Debbané Frères SAL has successfully closed a $13.3 million portfolio of trade receivables, which has been launched through Bemo Securitization (BSEC), for agricultural products sold to farmers and interested players along the agricultural supply chain throughout Lebanon. The transaction is the first such deal within the Lebanese sector, and will serve to provide financing to the country’s key but underserved agricultural industry which is in need of capital.

 

“We are delighted to bring to market this new transaction in the midst of difficult market conditions,” said Ronald Yazbeck, CEO of BSEC, reports CPI Financial “We view this transaction as an important milestone in bridging the gap between Lebanon’s primary sector and the banking sector. We are especially glad to have added value in Lebanon’s primary sector, by serving one of its pillars, the well-founded Debbané Frères.”

 

Lebanon’s agricultural sector accounts for approximately 6.3% of its total gross domestic product (GDP) and employs approximately 10% of the country’s population, however, financing offered to the agricultural sector by commercial banks equals only 1% of the total aggregate loans.

 

Under its structure, the Debbane Agri Securitization Investment Fund (SIF), which has been developed, placed, and managed by BSEC, offers Noteholders multiple credit enhancements, and has been created to be flexible enough to conduct subsequent issuances with various credit features and terms under the single vehicle.