Africa News Bank Audi Reinforces Its Financial Positioning Increase in core...

Bank Audi Reinforces Its Financial Positioning Increase in core equity Negotiations to sell Bank Audi Egypt


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Increase in Core Equity

Bank Audi has started accepting US Dollar denominated cash contributions to capital from its shareholders
(holders of common shares), in application of the first stage of Banque du Liban’s circular 532.
Shareholders holding the majority of the Bank’s capital have already indicated their willingness to
contribute, a valuable token of their commitment to Bank Audi and to Lebanon, particularly in the
exceptional circumstances the country is currently going through. The remaining shareholders are also
invited to participate in the cash contributions in order to increase the Bank’s Common Equity Tier One by

The terms of the cash contributions, proposed by the Board of Directors in its meeting dated 26 December
2019, include a conversion provision, pursuant to which cash contributions may be converted into common
shares. The conversion is expected to happen upon the final acceptance by the extraordinary general
assembly of shareholders which will be held on 20 February 2020.

Negotiations to sell Bank Audi sae (Egypt)

Bank Audi is currently conducting exclusive negotiations with First Abu Dhabi Bank to sell its subsidiary
in Egypt, noting that any final agreement remains subject to the receipt of regulatory approvals, including,
in particular, that of the Central Bank of Egypt, and to abidance with its directives and instructions, and
with those of the Central Bank of Lebanon, all in accordance with laws and regulations that are applicable
to Bank Audi in Egypt and in Lebanon.

The selection of First Abu Dhabi Bank as exclusive bidder on this transaction was made taking into account
the business continuity of Bank Audi Egypt and the interests of its stakeholders, in addition to the beneficial
impact which the transaction is expected to have on the Bank’s future business development.

First Abu Dhabi Bank, with its strong regional profile and its proven resources to complete the transaction
in a timely manner, is a very appropriate match for the customers, management and staff of Bank Audi

Discussions are still at an early stage and no definitive agreement has been reached.

At end-September 2019, Bank Audi Egypt’s assets reached USD 4.4 billion, with shareholders’ equity
totaling USD 427 million. The proceeds of the sale will contribute to the enhancement of the Group’s
liquidity and financial resilience. The Bank has no current intention to engage in negotiations to sell any
other subsidiary abroad.

About Bank Audi

Reinforced Financial Positioning

Commenting on both operations, Bank Audi’s Group CFO Tamer Ghazaleh stated “they represent a vote
of confidence in Bank Audi’s domestic and regional operations, and should consolidate the Group’s role in
facing the considerable challenges Lebanon is dealing with since the last quarter.” He added: “Bank Audi
remains keen on enhancing the financial position of its subsidiaries in Lebanon and abroad, and on
maintaining a level of shareholders’ equity which exceeds local and international regulatory requirements.
Both operations lie within this context.”


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