To facilitate the Client’s application process, the application will be divided into 2 parts, a technical part comprising the Technico-Financial Study, and an economic part comprising all other documents. The flowchart below illustrates the application flow from the Client’s decision to explore energy investment opportunities, to the final approval of the loan and guarantee.
Kafalat Energy guaranteed loans may be granted in either Lebanese Pounds or US Dollars, or any other convertible Foreign Currency.
Loans taken in Lebanese Pounds will be charged the following interest rate:
Interest Rate = 1-year Treasury Bills Yield (TBY's) + 3%
Loans taken in US Dollars or other foreign Currency will be charged the following interest rate:
Interest Rate = 1-year Libor + 5.5%
Kafalat Energy applications should enclose all the documents requested for Kafalat files.
In addition, the Client should provide one additional document pertaining to the energy project: a Technico-Financial Study. This study combines a detailed system design, which should follow sound engineering practice, and a financial analysis which should highlight the costs and revenues of the project. It must be prepared by a mechanical, electrical or energy engineer contracted by the Client.
Eligible applicants are SMEs with less than 40 registered employees operating in one of the five subsidized sectors: Industry, Tourism, Agriculture, High Technology and Crafts.
All types of legal economic entities are eligible for Kafalat Energy Loans.
Independent Power Producers are companies whose activity is restricted to producing electrical power and selling it to third parties; these companies are classified as industrial and thus are eligible.
Kafalat Energy guaranteed loans may be used to finance the following:
Kafalat Energy – Energy Efficiency guarantees loans with amounts varying between a minimum of LBP four million and a maximum of LBP 500 million and is available for loans in LBP or their counter value in USD.
This programme finances all types of projects that aim to improve the energy performance of SMEs, thus reducing the total energy consumption required for their activities.
Kafalat Energy is the result of a partnership between the European Union and Kafalat SAL to address energy constraints faced by SMEs while ensuring reduction of negative environmental impact.
This programme will provide eligible SMEs with loan guarantees for investments in Energy Efficiency and Renewable Energy.
The EU support enabled the extension of resources to increase the maximum loan amount and extend the duration of the guarantee and the grace period.
The borrower has first to approach a bank to present the project to be financed by the loan.
Once the bank has accepted the loan application, it submits this application to Kafalat. In addition to bank loan documents, Kafalat requires a completed loan guarantee application form as well as its own set of supporting documents.
Kafalat Basic guaranteed loans may be granted in either Lebanese Pounds or US Dollars, or any other convertible foreign currency.
Loans taken in Lebanese Pounds (LBP) will be charged the following interest rate:
Interest rate = 1-year Lebanese Treasury Bills Yield + 3%
Loans taken in Foreign Currency (e.g. USD) will be charged the following interest rate:
Interest Rate = 1-year Libor + 5.5%
For Individuals:
For Companies:
