Fransabank Archives - International Finance

Syria’s first international card payments signal return to global finance

International Finance Business Desk — Mon, 31 Aug 2026 01:00:55 +0000

Syrian President Ahmed al-Sharaa has used a cup of coffee to mark a much bigger transaction: the country’s first live international Visa card payment, signalling a further reopening of Syria’s financial system after decades of sanctions and isolation.

Al-Sharaa made the payment at a restaurant in Damascus’s Old City on Wednesday (August 26), with Central Bank Governor Mohammed Safwat Raslan present.

Visa said the transaction was conducted with Lebanon-based Fransabank as the acquiring institution and Syrian payments technology company Paymera, following an agreement with the central bank in December.

The milestone came a day after Washington formally removed Syria from its list of state sponsors of terrorism, a designation the country had carried since 1979.

The US move removes restrictions associated with the designation and is expected to reduce a major legal and compliance barrier for international banks and investors considering business in Syria.

The Treasury said the action would help foster additional investment and support political and economic stability.

Raslan described the Visa transaction as a “new beginning” for Syrian financial services. He said modernising the national payments ecosystem and integrating it with international payment networks was part of a wider effort to rebuild the country’s financial infrastructure.

Visa’s test was accompanied by an equally significant development from Mastercard and Qatar-based QNB Group.

The companies said they had completed the first end-to-end international Mastercard card payment in Syria, reconnecting the country’s payments ecosystem to Mastercard’s global network after an interruption of more than 15 years.

QNB Syria processed the transaction at an eligible local merchant using an internationally issued Mastercard. The payment was authorised through the network, and the merchant received the funds through the banking system, demonstrating that the full transaction cycle can now operate in Syria.

ALSO READ | IMF sees war-torn Syria’s recovery accelerating but warns reforms must deepen

QNB said eligible merchants, including hotels, restaurants and government entities, will be able to accept international Mastercard credit cards through its point-of-sale terminals. The rollout will be phased, with additional merchants added subject to regulatory approvals and compliance requirements.

For Visa, the immediate commercial focus is enabling international visitors to use their cards in Syria. Wider card acceptance could benefit tourism, hospitality and retail businesses while reducing reliance on cash and giving Syrian merchants access to international payment infrastructure.

The developments are part of a broader attempt by President al-Sharaa’s government to reconnect Syria with international finance and attract foreign investment following the overthrow of Bashar al-Assad in December 2024.

Progress has already been made on the payments side. Syria completed its first electronic transfer through the Swift international messaging system in June 2025, ending a 14-year exclusion.

The country has also been moving towards restoring correspondent banking relationships and rebuilding links with international financial institutions.

The lifting of the US terrorism designation is particularly important because the broader US sanctions regime had already been eased, but the terrorism designation remained a significant source of legal and reputational risk for global banks.

Its removal could make it easier for Syrian banks to establish correspondent relationships, process cross-border transactions and eventually expand access to international capital.

However, the return of global payments networks does not mean Syria’s financial isolation has ended overnight.

Banks and payment companies will still need to navigate remaining targeted sanctions, customer due diligence, anti-money-laundering rules, cybersecurity requirements and other regulatory controls.

That caution was reflected in Raslan’s comments that strong compliance, risk management and operational controls would remain essential to protecting payment and settlement systems and rebuilding confidence.

For businesses, the significance of the card transactions goes beyond the symbolic image of the president paying for coffee.

International card acceptance is basic financial infrastructure for an economy seeking to attract tourists, foreign companies and investment. It can also help formalise transactions, improve payment transparency and reduce dependence on cash.

ALSO READ | Iran war: US backs Iraq-Syria pipeline revival to reduce Hormuz oil risk

That transition will matter most for reconstruction, where Syrian companies will need reliable channels for importing equipment, paying overseas suppliers and receiving funds from foreign partners.

International payment connectivity can support those flows, although meaningful recovery will also depend on banking-sector reform, currency stability, investor confidence and the security environment.

For now, the first card transactions provide a tangible demonstration that Syria’s financial infrastructure is beginning to reconnect with the world at a commercial scale.

The simultaneous return of Visa and Mastercard, therefore, offers one of the clearest signs yet that Syria is moving from political and sanctions relief towards practical financial reintegration.

The next test will be whether banks, merchants and international investors follow the payment networks back into the Syrian market.

The post Syria’s first international card payments signal return to global finance appeared first on International Finance.

Lebanon makes a splash by issuing region’s first green bond

Bharath Kumar — Fri, 13 Jul 2018 05:41:50 +0000

Project financing appears to be taking an environmentally-friendly route, with green bonds gaining popularity. In 2017, green bond issuance touched a record US$155.5bn and is expected to touch US$1 trillion by 2020. Former UN climate chief Christiana Figueres says, “When green investments move from business plans into budgets and balance sheets a wealth of opportunity will be unlocked across the value chain.”

Last year, China emerged ahead of the list of top ten nations issuing national green bonds, trailed by France, USA, Germany, Netherlands, Sweden, Mexico, Spain, India and Canada. Until now, Poland, France and Fiji have who issued sovereign green bonds, and Nigeria is the latest to be part of this list. In December 2017, the Nigerian government provided a five-year green bond worth US$29mn to financially support regional solar and forestry projects. Investors will receive a 13.48% yearly coupon. Given the solid market uptake, green security development is becoming a priority in Africa. Nigeria’s green bond was the first of four sovereign green bonds granted the CBI’s best practice refinement, loaning certainty to banks, institutional and retail financial specialists who took up the bond.

Now, governments in Morocco, Sweden and Belgium are showing interest in green bonds. Since the principal wave of green bonds issued by the European Investment Bank and World Bank in 2007, companies like Apple, Toyota and the New York’s Metropolitan Transport Authority have raised more than US$80bn for green bonds. As Nigeria’s government guarantees pending tranches of issuance to help meet the global $1tn target, state governments and private parties are now hoping to come onboard.

Lebanon’s Fransabank took a keen interest in green bonds a few years back and issued its first green bond in April, incidentally becoming the first in Lebanon. Fransabank general manager M Nadim Kassar talks to International Finance exclusively on the bank becoming the first in Lebanon to enter the green bond market

In the Lebanese green bond market, Fransabank has the first-movers advantage. What was the reason behind this?

M Nadim Kassar,
general manager,
Fransabank

Fransabank has been working since 2013 to include Sustainable Energy Finance in its core business and have built capacity to become the pioneer in this field. Supported by IFC teams, Fransabank has financed more than 175 projects for a total worth of US$110mn. It was only logical to go a step further by issuing the green bonds. The programme is for US$150mn. The first tranche for US$60mn was issued last April with IFC as anchor investor with US$45mn share and EBRD as the second investor for US$15mn. This investment from prime International Financial Institutions represents a vote of confidence for Lebanon and Fransabank in particular. It sends a strong signal with regards the development of the green market in Lebanon and Fransabank’s role in this field.

With an initial investment of US$60mn in April 2018, the aim was to support the green projects in Lebanon. We are ready to promote and boost this field as developing Climate Finance is part of Fransabank’s Strategy.

What kinds of green projects has Fransabank strategised to invest in and why?

We would like to finance all projects that reduce greenhouse gas emissions, save energy or water but also any environmental or climate project. This includes among others, energy efficiency projects, renewable energy (solar farms, wind farms, solar photovoltaic for businesses or individuals, biomass, hydropower if any), green buildings, waste water, water management, etc. We are also focusing on the industrial sector to assist the industrialists in reducing their energy bill.

In a press release, Fransabank mentioned that its latest green bond project will help Lebanon to handle the 28% rise (since 1994) in greenhouse gas emissions and has geared up to reduce harmful emissions by at least 6,000 tons per year by 2022. How has Fransabank planned to attain this goal? How is the plan shaping up so far?

The green projects that we financed through the last three years have allowed a decrease of 2,500 tons of CO2 emissions and saved more than 4.2 million of kilowatt hour energy/ year (kWhe/year). We did not put an objective for 2022 but it will surely support the national plan to reduce greenhouse gas emissions.

Fransabank and IFC have a long standing relation in different forms of financing. Are the two organizations considering in working together for Green Bonds?

Fransabank and IFC’s relation dates back to the 1990’s. IFC supported Fransabank in many areas through several credit lines for productive sectors of the economy and advisory services. In 2013, with the support of IFC we launched the Sustainable Energy Finance initiative and benefitted from a US$40mn credit line specific for green projects. It is then with no surprise that IFC is the anchor investor in Fransabank’s first issuance of Green Bonds for US$45mn. IFC has also pledged to support an additional green bonds issuance by Fransabank.

The European Bank for Reconstruction and Development’s (EBRD) subscription of US$15mn marks the institution’s first debt project in Lebanon and follows the US$ 50mn trade finance line signed with Fransabank on 15 March 2018 in Beirut. Explain.

As you have highlighted clearly, EBRD first debt project and first Trade Finance Commitment line was done with Fransabank. This is a result of several years of discussion that we were unable to materialize before September 2017 when Lebanon became a Country of Operations for EBRD. These investments effected by EBRD represent very important milestones supporting the Lebanese economy and highlighting Fransabank’s pioneering role in trade business and green financing.

Until now, how has the entry into the green bond market turned out?

The issuance of green bonds is a first in Lebanon but also a first in the Levant region. Therefore, in order to launch this new financial instrument, it took a lot of commitment from our management. In addition, we had to make sure all necessary bodies were involved and we held several meetings with regulators whether Central Bank or the Capital Market Authority. The issuance of green bonds took place in April 2018 and went very smoothly.

What are the biggest hiccups in the regional and global market?

The advantages of Lebanon is the presence of natural resources whether the sun, the wind, the water, the biomass, etc. This is a key element that could change the energy mix in Lebanon. The hiccups remain the regional political instability and the awareness of clients: clients tend to think more about the profits they make than the environmental aspects of their projects. Fransabank is organizing workshops and conferences in each sector to create awareness, showcase costs reductions thus convincing clients that Climate Finance make business sense.

What can be done to boost the growing green bond market?

Several actions can support this field. In the last years, we have witnessed a very attractive and competitive financing mechanism developed by the Central Bank and the Lebanese Center for Energy Conservation at the Ministry of Energy and Water. We know the proper ministries are working on regulations and support schemes, we also know that the international development banks and UN based bodies are very supportive of the green market. With the CEDRE conference and the pledges from international communities towards supporting the Lebanese infrastructure and with the finalization of the PPP law, we have entered a new era towards sustainability and climate-related projects. In order to grow the green bond market, we have to continue creating awareness, to replicate success stories in sectors and hope for a snowball effect.

How does Fransabank see the future green bond market?

We believe that it is a very serious financial instrument. We know that in order to issue green bonds, the financial institution must abide by the green bond principles. This is a very sound and important commitment from the financial institutions towards sustainability. Therefore we sincerely believe in its future and we do hope for a quick development.

What are the bank’s own green financing milestones strategised for the future?

We are continuing on the same path, with a clear strategic objective to be the pioneer and innovative green bank in Lebanon.

The post Lebanon makes a splash by issuing region’s first green bond appeared first on International Finance.