Lebanon Businessnews News

A $150 million capital increase by Banque Libano-Française
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Banque Libano-Française (BLF) increased its capital by $150M. Total shareholder equity stands at around $1.054 billion.

“This capital increase falls within the bank's global strategy for growth to reinforce its assets and to meet investors' interests to subscribe to its shares,” said Dory Hage, General Manager of the Geneva-based LF Finance Suisse, the BLF's wealth management arm in Europe.

BLF increased its capital by issuing 1.5 million non-cumulative redeemable preferred shares 'Series 4', issue 2015. The share had a price of $100.

“Subscribers to the shares were mainly from our client base,” said El Hage.

According to Hage, the initial capital increase was targeted at $100 million, but the bank had received two and a half times over subscriptions to $250 million. He said that the bank then decided to set the capital increase at $150 million.

The annual dividend yield per share is seven percent. Dividends are subject to a 10 percent withholding tax. Shareholders will pay only five percent, while BLF will bear the remaining five percent, according to Hage.

“BLF is always looking to expand locally and regionally, whenever the opportunity is there,” said Hage. “Such expansions may be in terms of products and services, network of branches, or any attractive mergers and acquisitions deals,” he said.
Reported by Leila Rahbani
Date Posted: Jun 29, 2015
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