Audi Bank Calls for an Extraordinary General Assembly in Feb. 2020 to Tackle Cash Contributions, as per BDL’s Circular No.532

The Board of Directors (BoD) of Audi Bank called the shareholders to attend an extraordinary general assembly meeting scheduled on Thursday February 20th 2020 at 10.30am, at the bank’s headquarters in Beirut.

This general assembly comes in compliance with BDL’s circular No 532 issued on November 04th 2019, which instructed Lebanese banks to raise their capital (common equity tier 1) by 10% by end-2019 and another 10% by end-June 2020, with a total of $4.1B. In fact, the aggregate contribution of Audi Bank to its Tier I capital will not exceed $311M, which roughly represents 10% of the bank’s Lebanon Common Equity tier I as at Dec. 2018 as per the bank’s statement. 

The key items set on the meeting’s agenda are:

  1. To discuss and approve the terms and conditions of increasing the bank’s Capital via Cash Contributions denominated in USD and convertible  into common shares;
  2. Approve the conversion of cash contributions into common shares;
  3. Amend the bank’s capital to reflect the increase resulting from the cash contributions;
  4. Authorize the board’s chairman and/or general managers to implement the assembly’s decisions;
  5. Amend the bank’s Articles 6 & 8 of the By-Laws to reflect the issuance of the new shares resulting from the conversion of cash contributions
  6. Pass the general assembly’s above action plan to the Central Bank (Banque du Liban) for approval.

Moreover, Bank Audi issued a clarification statement to holders of its common shares, in which it clarified that these cash contributions are restricted to holders of the banks’ common shares. These holders therefore have the permission “to participate pro rata to their holdings of shares.” Lastly, Audi Bank invites its common shareholders willing to participate in the cash contribution to contact the Bank’s Head Office before February 20th 2020 to have access to the relevant Term Sheet and sign the required documents to pay the amounts of their subscriptions.  

Source: Audi Bank; BSE

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