Emirates Lebanon Bank s.a.l (a fully-owned subsidiary of Bank of Sharjah), and BNP Paribas, have announced filing for regulatory approval in relation with their contemplated partnership in Lebanon. As per agreements entered into between the parties and which remain subject to the approval of Banque du Liban (Central Bank of Lebanon), the UAE-based bank will be acquiring through its Lebanese subsidiary, Emirates Lebanon Bank s.a.l (previously Banque de la Bekaa s.a.l), the activities of the Lebanese branch of Banque Nationale de Paris Intercontinentale (a fully-owned subsidiary of BNP Paribas). Emirates Lebanon Bank s.a.l will be 81% owned by Bank of Sharjah with BNPI France holding the balance of 19%. A collaboration agreement between the Lebanese bank and BNP Paribas at the level of private banking and asset management is also being considered.
Management of operations will continue to be handled by staff seconded from BNP Paribas, while existing employees will be awarded a 3-year job protection scheme.
Varouj Nerguizian, Executive Director & General Manager of Bank of Sharjah, and Chairman & General Manager of Emirates Lebanon Bank s.a.l, says that 30% of the capital of the Lebanese bank will be offered at a later stage to a select group of Gulf and Lebanese private investors subject to regulatory approval.
Bank of Sharjah had earlier declared its intention to gradually build a franchise throughout the Middle East region, and in this respect, raised lately the share capital of Emirates Lebanon Bank s.a.l to $50 million while injecting a cash contribution to capital of S100 million in order to boost equity to S150 million.