Sharjah bank unit wins Lebanon's BNPI offices

Dubai: Bank of Sharjah announced on Wednesday that its Lebanese subsidiary, Emirates Lebanon Bank has received the final approval from Central Bank of Lebanon on the acquisition of the operations of the Lebanese branches of Banque Nationale de Paris Intercontinentale (BNPI) as of September 30.

Earlier, the Bank of Sharjah 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.

Bank of Sharjah will own 81 per cent, while BNPI France will hold 19 per cent. A collaboration agreement between the Lebanese bank and BNP Paribas has been reached, at the level of private banking and asset management.

Select group

Varouj Nerguizian, Executive Director and General Manager of Bank of Sharjah, disclosed that 30 per cent of the capital of the Lebanese bank will be offered to a select group of Gulf and Lebanese private investors subject to regulatory approval.

Emirates Lebanon Bank is considered a platform for the Bank of Sharjah's future expansion in the Levant where it intends to benefit from exceptionally strong synergies with its Gulf-based clientele.

BNPI is one of the major banks and has been operating in Lebanon since 1944. It engages in commercial banking activities through its five branches.

As at the end of August, it boasted an asset base of about $900 million serving 13,500 individual clients and 1,300 corporates.

Resume activities

BNPI will resume its activities under the name Emirates Lebanon Bank S.A.L. beginning this month.

A reception was held yesterday at Beirut's Intercontinental Phoenicia Hotel.