BLOM Bank’s extraordinary General Assembly held on January 14th approved the terms of raising the bank’s Common Equity Tier I by $261.94M through cash contributions (in USD), which is equivalent to 10% of BLOM Bank’s Capital.
The issued statement comes on the back of BDL’s Circular No.532 (issued Nov. 04th) which instructed Lebanese commercial banks to increase their Capital by 10% by December 2019, and another 10% by end-June 2020.
The initial details of BLOM Bank’s capital increase revealed that holders of BLOM listed or GDR shares will participate in the cash contributions, noting these last will be perpetual and subject to either a full or partial conversion into shares during any year, over the next five years. It is worth noting that the bank may pay an annual interest on the cash contributions to capital (CCC).
The bank will disclose more details to shareholders on the above-mentioned CCC in a Term Sheet over the upcoming period.
Source: BLOM Bank