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Sharjah bank's unit expands in Lebanon
Emirates Lebanon Bank, a fully-owned subsidiary of Bank of Sharjah (BoS), and BNP Paribas are in the process of seeking regulatory approval for Emirates Lebanon Bank's proposed acquisition of the Lebanese branch of Banque Nationale de Paris Intercontinentale (BNPI), a fully-owned subsidiary of BNP Paribas.
- Staff Report
- Published: 23:54 June 22, 2008
Dubai: Emirates Lebanon Bank, a fully-owned subsidiary of Bank of Sharjah (BoS), and BNP Paribas are in the process of seeking regulatory approval for Emirates Lebanon Bank's proposed acquisition of the Lebanese branch of Banque Nationale de Paris Intercontinentale (BNPI), a fully-owned subsidiary of BNP Paribas.
After the completion of the deal Emirates Lebanon Bank will be 81 per cent owned by BoS with BNPI France holding the balance of 19 per cent.
Following the deal, the Emirates Lebanon Bank and BNP Paribas are considering cooperation in private banking and asset management business in Lebanon, the banks said in a joint statement yesterday.
The agreements between the parties are subject to the approval of Banque du Liban, Lebanon's central bank.
Varouj Nerguizian, executive director and general manager of Bank of Sharjah, and chairman and general manager of Emirates Lebanon Bank said in a statement yesterday that 30 per cent of the capital of the Lebanese bank will be offered at a later stage to a select group of Gulf and Lebanese private investors subject to regulatory approval.
Bank of Sharjah had earlier declared its intention to gradually build a franchise throughout the Middle East region.
Cash contribution
It raised the share capital of Emirates Lebanon Bank to $50 million while injecting a cash contribution of $100 million in order to boost equity to $150 million.
The Lebanon operation is considered as a platform for Bank of Sharjah's future expansion in the Levant where it intends to benefit from exceptionally strong synergies with its Gulf-based clientele.
BNPI has been present in Lebanon since 1944. It engages in commercial banking activities through a network of five branches. At end 2007, it boasted an asset base of around $850 million serving 13,500 individual clients and 1,300 corporates.
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