Bank of Sharjah announced that its Lebanese subsidiary, Emirates Lebanon Bank S.A.L. 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 as at 30 September 2008.
Bank of Sharjah raised earlier the share capital of Emirates Lebanon Bank S.A.L. to $50m while injecting a cash contribution of capital of $100m in order to boost equity to $150m.
Bank of Sharjah will own 81%, while BNPI France will hold 19%. A collaboration agreement between the Lebanese bank and BNP Paribas has been reached, at the level of private banking and asset management.
Varouj Nerguizian, Executive Director & General Manager of Bank of Sharjah, disclosed that 30% 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 S.A.L. is considered 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 is one of the major banks and has been present in Lebanon since 1944. It engages in commercial banking activities through a network of 5 branches. As at end of August 2008, it boasted an asset base of around $900m serving 13,500 individual clients and 1,300 corporates.
BNPI will resume its activities under the name of Emirates Lebanon Bank S.A.L. beginning October 2008. On this occasion a reception will be held on the 8th of October 2008, at the Intercontinental Phoenicia Hotel - Lebanon.
