BLC Bank shuts down investment subsidiary. To focus more on commercial banking

BLC Bank, part of the Fransabank group, has shut down its investment subsidiary, BLC Invest.

The bank said in a statement that it is concentrating on commercial banking activities and for this reason, it has absorbed all of the assets and liabilities of BLC Invest. It said that it has provided continuity to all BLC Invest employees who have expressed a wish to stay on.

"All outstanding activities of BLC Invest are now assumed by BLC Bank," the bank said.

A person familiar ...

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Audi writes off $191 million in Syria, Sudan investments. Positive growth in all Q3 indicators

Bank Audi announced that it has written off its investments in Syria and Sudan for an amount of $191 million. In its third quarter results report, the bank declared a 15.2 percent growth in profits over the same period of last year, to $350 million.

The bank's other indicators were all positive, deriving almost half its operations from entities abroad.

The bank announced the following results:
$45.3 billion of assets, of which 45 percent is from entities abroad
$37.0 billi...

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Berytech Fund I exits three companies for $800,000. PayPlug, Active Identity, and Cook & Eat Lebanese

Berytech Fund I has exited three of its portfolio companies, PayPlug, Active Identity, and Cook & Eat Lebanese, at a combined price of nearly $800,000.

The venture capital fund said it divested itself from PayPlug at three times the initial investment. The stake was sold to PayPlug's existing shareholders who were seeking to increase their share in the company. PayPlug is a mobile payment company created in 2012 by two Harvard Business School graduates, Camille Tyan and Antoine Grimaud. T...

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Kafalat iSME invests $600,000 in Falafel Games. Amount forms part of a $2.6 million equity funding

Kafalat iSME Programme has contributed $600,000 of equity into Falafel Games, a developer of game applications.

The investment is part of a $2.6 million equity funding recently raised by Falafel Games to finance the creation of new games and its planned market expansion. Middle East Venture Partners (MEVP) has provided two million dollars.

iSME, which plans to exit this investment within five years, co-invests alongside institutional investors in innovative companies, said Bassel A...

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Green loans subject to new changes. Semi-annual follow-up reports among new requirements

A new set of technical eligibility criteria for National Energy Efficiency and Renewable Energy Action (NEEREA) loans has been announced.

The criteria were finalized by the Lebanese Center for Energy Conservation (LCEC) based on a request from the Central Bank (BDL).

Mazen Halawi, Deputy Director of the financing unit at BDL said: "Real estate development is one the main reasons behind changing the criteria."

Property developers are one of the biggest applicants of NEEREA...

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Green for Growth fund to start local operations. Fund can directly finance projects or partner with financial institutions

Green for Growth, an international fund for renewable energy and energy efficiency projects operating in Southeast Europe, European Eastern Neighborhood Region, and in the Middle East and North Africa, will start operations in the local market, according to Lachlan Cameron, Green for Growth's Senior Officer in Energy Finance.

The fund's budget for the three regions has reached $370 million this year. The eligibility criteria for applying for financing from Green for Growth (GGF) are havi...

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Renewable energy to get financing support. EU, EIB, AFD to provide funds and technical assistance

The Central Bank (BDL) will launch early next year an €80 million credit line for renewable energy and energy efficiency projects.

The credit line is funded by the European Investment Bank (EIB) and Agence Française de Développement (AFD).

The European Union (EU) will also offer technical assistance through a team of international and national experts to support BDL and private banks to prepare the financing scheme.

Although the received funds are in euro, t...

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Royal Forex to upgrade to a financial company. Change enables it to tap into micro lending and investment funds

Royal Forex Trading has changed its name to Royal Financials as part of a move to upgrade its license from a financial brokerage firm into a financial company.

This change will enable the company to tap into the micro-loan industry and to add new financial products like investment funds, said CEO Rayan El Annan.

Royal Financials, which currently operates an electronic trading platform (ETP), is already licensed to conduct advisory and discretionary trading as a brokerage firm.
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Le Vendome secures debt reschedule scheme. The value of loans is around $100 million

Bankmed and Bank Audi have agreed to refinance the debts of La Société des Grands Hotels du Liban (SGHL), owners of the Hotel Phoenicia and Le Vendome, after negotiations to restructure the debt. Bankmed is the main lender.

The banks agreed on the rescheduling of debt payments based on a payment-in-kind security against Le Vendome hotel. As the Central Bank (BDL) is facilitating debt relief schemes to businesses, its Banking Control Commission participated in the negotiati...

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IM Capital launches angel investor program. Targeted investment of $300,000 in first year

Insure and Match Capital (IM Capital), a Berytech company, has launched Seeders Masterclass for Business Angels, a one-year program to link early-stage individual angel investors and micro and small and medium enterprises (MSMEs) through a "learn and earn" system.

Implemented in collaboration with Switzerland-based early-stage investing platform Go Beyond, the $300,000 program will have 25 different angel investors participate with $15,000 each during its first year.

The program a...

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Speed@BDD completes second acceleration program. Startups seek a combined $3.5 million capital

Speed@BDD has completed a three-month acceleration program for seven tech startups in which it has invested $210,000. This is the startup accelerator's second program, with a third acceleration program in the offering.

The investment comes under the Central Bank's program which aims to support entrepreneurs in the knowledge economy.

The tech accelerator stated that during the cycle it has invested $30,000 in cash in each startup and an equivalent amount in "in-kind" services cove...

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IFC to invest in Bank Audi Turkey. Capital increase of $342 million will include EBRD and other investors

Odea Bank in Turkey, a subsidiary of the Bank Audi Group, said it will increase its capital by one billion Turkish lira ($342.6 million) through subscriptions from new shareholders and its mother company. The bank had $471 million in equity at the end of 2015.

The International Finance Corp (IFC) and the IFC Financial Institutions Growth Fund will inject a $110 million capital increase while the European Bank for Reconstruction and Development (EBRD) will contribute $90 million. The remai...

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Solidere pays out dividends despite losses. Better sales expected this year

Solidere will pay dividends of $35 million to its shareholders and expects greater property sales by the end of 2016.

In an announcement following its General Assembly meeting, held June 27, the real estate developer said that it will distribute one share for every 80 shares, and $0.10 per share, based on shareholders' record as of August 18, 2016.

Nasser Chammaa, Chairman, said: "Despite last year's negative results, 2016 is beginning to witness positive and encouraging signs." L...

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Banks now to fund speculative property deals. Ruling helps ease developers’ debt burden

The Central Bank (BDL) has issued a ruling that allow banks to provide loans to real estate companies that wish to purchase built properties to help alleviate the debt burden of some real estate developers.

The ruling allows real estate developers that are unable to sell their stock in order to meet bank installments to sell the entire project to a company that has the financial ability to wait for better market conditions.

The construction project of the property to be purchased...

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EIP fully acquires General Cable Egypt. Deal valued at $15 million

Emerging Investment Partners (EIP) has fully acquired General Cable Egypt, said Wassim Heneine, EIP's Managing Director.

The agreement was closed for an undisclosed sum. According to sources close to the deal, the investment included $10 million – $12 million in equity, and the rest in debt from shareholders.

The project involves expanding the production of low-voltage cables, and the possibility of introducing the manufacture of medium-voltage cables, he said.

The compa...

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Fransabank buys stake in Pinpay for $2.5 million. Bank to use the service

Fransabank will invest $2.5 million in Pinpay, a local provider of mobile payment services, said a source close to the deal.

Under the deal, Fransabank will also be using Pinpay's services for its customers. The bank will stop operating the Simba mobile payment application provided by Viamobile.

Fransabank's $2.5 million stake will increase PinPay's capital to LL13 billion ($8.6 million). Pinpay's other shareholders are Bank Audi, Bankmed, and Middle East Venture Partners (MEVP)...

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Moneylenders and NGOs added to watchlist categories. Central Bank tightens noose around money launderers

The Central Bank (BDL) has added three categories of customers to the list of clients that banks and financial institutions should classify according to their risk for money laundering and terrorist financing.

BDL's intermediate circular 421 has identified moneylenders (known locally as credit comptoirs) and non-banking institutions that carry out electronic cash transfers. It also includes charitable organizations, especially newly-established, that do not have clear financing programs ...

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Four banks bidding for local HSBC branches. Fransabank, BLF, BLOM, and Audi have been prequalified

Fransabank and BLF are among the banks seeking to acquire the local operations of HSBC, according to a source close to the deal.

BLOM Bank and Bank Audi are also competing for the deal. HSBC has prequalified four banks only.

The banks are not creating consortia to acquire HSBC Lebanon as groups, so only one bank will win the deal, which is still at the negotiation stage and requires the approval of the Central Bank, the source said.

The move is part of HSBC Holdings' plan ...

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Prepaid cards, bearer shares prohibited by Central Bank. In effort to combat money laundering

The Central Bank (BDL) has issued a ruling prohibiting banks from issuing or marketing prepaid cards. The decision also applies to other institutions that issue credit and loyalty cards.

The move is part of BDL's efforts to combat money laundering. The ruling pertains to anonymous cards, which could be easily used for money laundering purposes, the source said.

BDL gave the concerned parties till Sept. 30, 2016 as the deadline to take the necessary measures to settle the problem of...

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Prepaid cards ended by the Central Bank. Part of efforts to combat money laundering

The Central Bank (BDL) has issued a ruling prohibiting banks from issuing or marketing prepaid cards. The decision, released through intermediate circular 415, also applies to other institutions that issue credit and loyalty cards.

The move is part of BDL's efforts to combat money laundering, said a banking source. The ruling pertains to anonymous cards, which could be easily used for money laundering purposes, the source said.

BDL gave the concerned parties till Sept. 30, 2016 as...

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e-Payment security by Bank Audi. Two services developed with MasterCard and Visa

Bank Audi launched services that provide e-commerce and mobile commerce security tools, in partnership with MasterCard and Visa.

Randa Bdeir, Group Head of e-Payment Solutions and Card Services at the bank, said that the bank developed two new services, 3D Secure and Tokenization, to protect cardholders and merchants.

She said: "The 3D Secure service is designed to increase the security level of transactions when shopping online, while protecting both the cardholder and the merchan...

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Torbey camp prevails in sale of Credit Libanais. EFG Hermes to sell 63 percent share for $492 million

The Egypt-based EFG Hermes said its board has approved the sale of its 63.7 percent stake in Credit Libanais for a total of $492.2 million. Credit Libanais Investment Bank (CLIB) has arranged the sale of 9.41 million shares, representing 40 percent of the bank's capital to Lebanese and Arab investors. At this valuation, the price comes close to book value.

Bank Chairman, Joseph Torbey, was able to raise the required amount for acquiring the stake, according to a source close to the deal. ...

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IFC extends loan to Fransabank arm. To provide more environment friendly loans

International Finance Corporation, member of the World Bank, signed a $7 million loan agreement with Fransabank subsidiary, the Lebanese Leasing Company (LLC).

The loan, supported by the Canadian Government, will be used in energy efficiency and alternative energy projects.

Adel Kassar, Chairman of LLC, said: "This investment will help us increase our support to small enterprises looking to invest in clean energy."

This is the third loan given by the IFC to Fransabank as par...

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Loans guaranteed by Kafalat down by 19 percent. Agriculture sector gained the largest share

The number of loans guaranteed by Kafalat declined by a yearly 19 percent to 676 in 2015. The volume of loans reached $93 million, a decrease by more than 14 percent.

The agriculture sector registered the largest share with 47 percent of these loans. "This is due to the increasing range of Kafalat products offered to farmers to finance reforestation, trees and other projects," said Yolla Sarieddine, at Kafalat.

The industry sector came in second, with 34 percent, followed by the t...

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Islamic Bank loan for hydropower plants. Part of the Beirut Water Supply Project

The Council of Ministers approved yesterday a loan agreement with the Islamic Development Bank (IDB) to fund the remaining part of the Water Supply Augmentation Project. The funds will be used for the construction of two hydropower plants generating over 12 megawatts, a wastewater treatment plant, and a secondary water treatment plant.

The value of the loan is $128 million, according to Elie Moussalli, Project Director at the Council for Development and Reconstruction (CDR). These will b...

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Speed@BDD invests $180,000 in startups. First batch to seek more investment

Speed@BDD, a tech startup accelerator, said it has invested $180,000 in its first batch of startups and offered them a three-month acceleration program.

The investment was equally divided among the six startups with each receiving $30,000 to develop its idea. Speed@BDD also provided free hosting and various services that included mentorship and product and business development as well as accounting and legal services.

The startups pitched their businesses and showcased their produ...

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BDL assets at $91 billion up by a yearly six percent. Assets from exchange operations of financial instruments was main growth driver

The Central Bank's (BDL) assets grew by 6.1 percent to $91.4 billion at the end of 2015 compared with the end of 2014.

The growth was mainly driven by assets from exchange operations of financial instruments, which totaled $11.6 billion at the end of 2015 compared with nil a year earlier.

BDL's securities portfolio also contributed to the total asset growth as it surged 29 percent to $18.1 billion. The increase was due to purchases of Treasury bills by the Central Bank, which had ...

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Central Bank extends subsidized loan program. Beneficiaries include small businesses and home buyers

The Central Bank (BDL) has extended to the end of 2016 the 60 percent exemption of reserve requirements for certain loans denominated in lira. The exempted funds may be used by banks to extend soft loans for housing or business financing.

The loans that are subject to the extension are those that do not benefit from other interest subsidies by the State. The loans should be used to finance new projects or the expansion of existing projects in the productive sectors (as specified by BDL, ...

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30 percent of corporate income goes on taxes. 20 different duties are paid yearly

The aggregate corporate tax rate was 30 percent, which represents the total of all taxes borne as a percentage of commercial profit. The time to comply with all tax formalities was 183 hours. The total tax rate reflected all taxes and contributions that a standardized medium-sized domestic company pays within a specific year, according to 'The Ease of Paying Taxes in the World', a report published by PriceWaterhouseCoopers (PWC) and the World Bank (WB). Taxes and contributions that local medium...

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Berytech Fund invests $20 million. Equity injected in 12 local SMEs

Berytech Fund II has invested nearly $20 million since its inception ten months ago, said Paul Chucrallah, Fund Managing Director. These equity investments were injected in 12 small companies in the telecommunications, digital content, and industrial design sectors, he said.

"This is a breakthrough achieved in such a short period of time as the fund is supposed to invest its capital, amounting to $51.5 million, over a period of four years," Chucrallah said.

The SMEs that the fund h...

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Beirut bourse outperforms Arab markets. Local exchange down two percent while major regionals down by two digits

The Beirut Stock Exchange (BSE) has performed better than all the Arab stock markets in 2015 (counting figures from the first 11 months), with the exception of the Palestinian bourse.

The BSE declined by only 1.8 percent. The Saudi stock market dropped by 13 percent, Qatar went down by 18 percent and Dubai by 15 percent. The greatest plunge was in Iraq and Egypt, whose bourses plummeted by 30 percent and 29 percent, respectively. Only the relatively small Palestine bourse had a slightly ...

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Solidere shares 30 percent up. Good time to buy

Solidere gained $412.6 million in market capitalization since November 10, two days before the Parliament sessions that approved crucial financial laws.

There are some indicators of positive developments on the local political scene, said Marwan Mikhael Head of the Research Department at Blominvest Bank. Solidere stock is a 'political barometer' because it is very sensitive to political and security developments in the country, notwithstanding the company's performance, he said.

M...

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Central Bank sets rules for incubators and accelerators. Knowledge economy to account for five percent of GDP by 2030

Incubators and accelerators are allowed to invest only up to five percent in the capital of each startup company that benefits from their support, according to a circular by the Central Bank (BDL) issued recently.

"BDL is keen to determine the goal of each investor in startups," said Marwan Mikhael, Head of Research at Blominvest Bank. "Instead of having high shares in a target company and provide it with a priority, BDL considers that incubators and accelerators should be neutral and ser...

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