Bank of Beirut raises capital

Reports show 18 percent growth in deposits

Bank of Beirut (BoB) increased its core capital by $25 million through issuing a new series of perpetual, non-cumulative, redeemable preferred shares. Five million Series ‘I’ Preferred Shares were issued at a total value of $125 million (issue price of $25 per share).

BoB said the issue intended to offset the impact of the full redemption of Series ‘D’ Preferred Shares which were redeemed during December for $100 million. The remaining amount, $25 million, was used to increase the bank’s core capital with the aim of boosting its Capital Adequacy Ratio. After the increase, BoB’s shareholder equity reached around $1.1 billion.

Bank of Beirut ended 2012 with an 18 percent growth in customers’ deposits, totaling $8.8 billion. Loans to customers rose to $3.4 billion, up by 13 percent. Profits for the period grew by 12 percent to $117 million. The bank had a core capital adequacy ratio of 12 percent (as per Basel III).

‘Series I’ Preferred Shares shall earn an annual dividend equal to 6.75 percent of the issue price. All five million shares will be listed on the Beirut Stock Exchange as of January 31.

BoB has some 50 million common shares, including 16 million shares listed on the BSE. It has 2.4 million Series ‘E’ Preferred Shares and 5.4 million Series ‘H’ Preferred Shares listed on the stock exchange.