Lebanon Businessnews News
 

IFC invests in Bank Audi
A partnership to support the bank’s regional growth
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The International Finance Corporation (IFC), a member of the World Bank Group, signed an agreement to provide subordinated loans of $150 million for ten years to Bank Audi.

This agreement was made with the IFC Capitalization Fund, a global equity and subordinated debt fund supported by IFC and the Japan Bank for International Cooperation, and managed by the IFC Asset Management Company, a wholly-owned subsidiary of IFC.

The funding will expand Bank Audi’s capital base and support its regional growth plans, as per the statement issued by IFC and Bank Audi.

“This investment in Lebanon is a positive sign for the country’s resilience and the region’s growth potential”, said Samir Hanna, Group CEO of Bank Audi.

“This partnership comes as a result of a long relationship with Bank Audi, similarly to many other local banks, and translates our confidence in its strong management and the local banking sector in general,” said Thomas Jacobs, Senior Country Officer – Lebanon, Middle East and North Africa, at IFC. “We have equity investments in other banks, including a share of eight percent in Byblos Bank since 2010,” he said.

Jacobs did not reveal any figure about the interest rates on the subordinated loans. According to him, the IFC provided Bank Audi with subordinated loans instead of investing in its core capital, because there was a combination of what this bank really needs. “Bank Audi is seeking financing to enhance its regional expansion plans,” he said.

In December 2013, IFC provided a $75 million financing package to Odeabank in Turkey, a fully owned subsidiary of Bank Audi.

“The IFC always looks for investing in new local banks, whenever there is the right opportunity and sound performance to improve the banks’ management and help them expand abroad, especially in the region,” said Jacobs.

Reported by Leila Rahbani
Date Posted: Mar 07, 2014
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