European Bank For Reconstruction And Development Provides US$22 Million Package To Strengthen Lebanon’s Food Retail Sector

The European Bank for Reconstruction and Development (EBRD) is strengthening Lebanon’s food retail sector by providing a US$22 million financing package to Spinneys Levant Limited, one of the country’s major retail operators. The company runs its Lebanese operations through its subsidiary, Gray Mackenzie Retail Lebanon SAL (GMRL).

This support aims to help the retailer continue operating effectively despite Lebanon’s difficult economic conditions, while also promoting more sustainable and energy-efficient practices across its business.The financing includes a US$20.5 million senior loan from the EBRD and a US$1.5 million co-investment grant.

Together, these funds will support Spinneys Levant’s capital expenditure plans in Lebanon, including upgrades to its stores, new production capacity, and investments in energy-efficient technologies that would not be feasible without concessional support. The project benefits from blended finance through a first-loss guarantee from the European Union under the EFSD+ Municipal, Infrastructure and Industrial Resilience Guarantee Programme, designed to encourage investment in challenging environments.

This initiative highlights the continued commitment of both the EBRD and the EU to backing strong private-sector companies in Lebanon, even as the country faces economic instability and regional uncertainty. A portion of the funds will be directed towards expanding Spinneys’ store network and increasing its production capabilities, including the development of a new fresh snack production line.

A key part of the financing focuses on improving energy efficiency across Spinneys’ retail network. The company will implement upgrades in both existing and new outlets, which are expected to significantly reduce energy use and lower annual CO2 emissions by more than 5,400 tonnes. These improvements should also generate substantial energy savings of roughly 150,845 GJ each year.

The project will also help the company reduce its environmental footprint by cutting plastic bag usage by 25 per cent and introducing fully recyclable alternatives. This shift supports broader efforts to improve circularity and responsible waste management within Lebanon’s retail sector.Spinneys has already taken steps in recent years to adopt more sustainable practices, including reducing single-use plastics, promoting recyclable packaging, improving waste handling, and investing in energy-saving technologies.

The EBRD’s financing will enable the company to deepen these efforts and continue modernising its operations.Beyond financial support, the EBRD will also provide a comprehensive technical cooperation programme to help Spinneys strengthen workforce skills. These new training initiatives will focus on key areas such as Retail Space Management, Brand Management, Digital Marketing, and the automation of retail processes, with a particular emphasis on digital and AI-driven operations.

Environmental sustainability will also be included in the training, especially topics related to reducing plastic use and waste.Broadgate Advisers served as the exclusive financial adviser to Spinneys Levant Limited for this transaction.The project is backed by the EFSD+, established under the EU’s NDICI–Global Europe framework, which helps partner countries finance strategic investments through grants and guarantees.

The programme aims to mobilise additional public and private financing for sustainable development and has a global guarantee capacity of €40 billion for the 2021–2027 period.Since beginning its operations in Lebanon, the EBRD has invested more than €864 million in the country. Its efforts have focused on improving private-sector competitiveness, supporting trade finance, advancing sustainable energy solutions, and helping raise the quality and efficiency of essential public services.