Beirut Stock Exchange (BSE) announced that as of March 23rd 2020, an additional 188,789,011 common shares issued by Bank Audi will be listed on the BSE. In fact on March 18th 2020, Bank Audi announced the completion of its capital increase phase 1.
Revisiting BDL’s Circular No. 532 issued on November 04th 2019 reveals that Lebanese banks were instructed to increase their Tier I Capital (via cash contribution) by 10% by Dec. 2019 and another 10% by June 2020.
Accordingly, Bank Audi’s required first (10%) cash contribution as per the terms of BDL’s Circular totaled $311M as indicated on the bank’s Term Sheet. However, it is worth noting that Bank Audi’s first cash contribution totaled $209.56M and entailed an immediate conversion of the CC to common shares as detailed below.
Audi Bank’s Extraordinary General Assembly Meeting held on Feb. 20th 2020 approved raising the bank’s original capital from LBP 677.6B ($449.5M) to LBP 992.88B ($658.63M). It followed that BDL approved the bank’s capital increase procedure which entailed the issuance of 188,789,011 newly listed common shares that are priced, listed, and traded on BSE as per the following terms:
- Nominal value: LBP 1,670 or USD 1.11 per share
- Conversion Ratio: “Holders of CC are entitled to receive a number of shares, rounded down, equal to the nominal amount of CC, divided by $1.11”
- Effect of CC conversion: Upon conversion of CC into Common shares, the CC shall be cancelled.
- Use of the Proceeds: The net proceeds of the CC are aimed “to strengthen and enhance the bank’s common equity Tier I Capital”, as per the published Term Sheet.
|Audi Shares, per Type
||Total Number of Shares
|Audi Common Shares, of which:
|Audi Preferred Shares, of which:
|TOTAL Number of Shares
Source: BSE, Audi Bank