Cedar Oxygen Bamboo raises $ 500 million with capital shareholders

On Tuesday, the Cedar Oxygen Fund announced during a virtual conference that it had formed a “joint venture” with the Lebanese Economic Empowerment Fund (LEEF) with investment platform Bamboo Capital Partners (Bamboo). Thus, an initiative launched in 2020 and surpassing the initial goal of Luxembourg-based Cedar Oxygen, involves providing loans to Lebanese businessmen to finance the import of raw materials in the wake of the country’s economic and financial crisis. Has been going on for two years.

Bamboo Managing Partner Florian Kemmerich announced that the joint venture, which will allow halving costs and risks, aims to raise “$ 500 million” to invest in Lebanese companies. At Cedar Oxygen, the central bank is the sole investor, almost three times the amount invested by the Lebanese bank ($ 175 million in five years, renewable every six months). This initial amount made it possible to lend to a dozen companies. If Cedar Oxygen now benefits from the international network of bamboo fund investors, there will be “no last word” on these two funds, Alexandre Hergas, CEO of Cedar Oxygen, has promised.

Will work

According to Mark Smith, Chief Financial Officer, Cedar Oxygen, Cedar Oxygen has been providing short-term loans of up to 30 days to six months to businesses for almost a year. A move to mitigate the total cessation of bank lending from the summer of 2019 and the restrictions on illegal foreign exchange deposits by banks. However, there are no interest rates. Communication however depends on many factors such as the risk of the company and its strategy. Companies, whether importers or not, must deposit a certain portion of the loan amount.

Mark Smith explained that with the new framework in place, its assistance in importing raw materials would no longer target Lebanese businesses, but “private sector companies that import and increase national output.” Whatever their size: micro-business, small and medium (SME) or large. Mark Smith said it would therefore include agribusinesses in the “second phase”, which was later developed by Florian Kemmerich, but excludes merchants. The latter, however, states that “the Lebanese are open to any sector that employs and focuses on environmental, social and administrative criteria for economic development (…), (ESG).”

Finally, Mark Smith stated that he would like to begin financing the capital investments of companies such as the New Industrial Machinery (Capex), while Alexandre Harkus expressed a desire to return to renewable energy in solar energy. , Bamboo is an investment platform that provides financial solutions (credit or capital) and aims to make an impact in marginalized communities. It invests in four sectors: financial content, agribusiness and access to clean energy and medical care. In the Middle East, he is active in Lebanon, Jordan, Iraq and Palestine, according to his website. The fund manages a portion of Palladium’s assets in more than 90 countries, including Lebanon, in particular collaborating with the US Agency for International Development (USAid), Jose Maria Ortiz (also present) conference, co – director of Europe, the Middle East and Africa (EMEA) region internationally on palladium. Investment Leader.