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FIB Dealer Manager for the Republic of Lebanon
Fransa Invest Bank SAL was selected as joint lead manager along with two other international banks, Deutsche Bank and Standard Chartered Bank, to act as Dealer Managers for the Republic of Lebanon’s Voluntary Debt Exchange for Eurobonds maturing in 2012, totaling USD 1.98 billion. The purpose of the exchange offer was to proactively conduct liability management operations, increase the Republic’s financial flexibility and extend its debt maturity profile. The aggregate participation rate for the exchange offer was 64.3%. In details, USD 668,720,000 and Euro 420,942,000 face value of notes maturing in 2012 were exchanged into new longer-dated notes. In addition to the new Notes being issued pursuant to the voluntary exchange offer, the Lebanese Republic issued additional Notes amounting USD 238,3 million for cash. As such, total Notes issued reached USD 1,468 million broken down as follows: Euro 445 million bonds maturing in November 2018 with a coupon rate of 5.35%, USD 375 million bonds maturing in November 2019 with a coupon rate of 5.45%, and USD 375 million bonds maturing in November 2026 with a coupon rate of 6.60%.

The issue was highly successful. Among the most impressive achievements were:
  • The long term maturities of the new Notes issued: 7, 8 and 15-year
  • The aggressive pricing of the new Notes
  • The aggregate participation rate of 64.3%. Compared to the 58.53% participation rate of the voluntary exchange offer realized in April 2008 , the participation rate of this exchange is even more significant, given that:
    • The country in April 2008 was encountering a lesser adverse situation than today
    • The coupon of the new issued Notes in 2008 was higher or almost equal to the coupons of the three Original Notes exchanged (9.00% versus 7.00%, 7.375% and 10.125%)
    • The exchange in 2008 was for medium term new Notes (6-year) whereas the exchange in 2011 was for much longer maturities new Notes (going to 15-year).
    • The book size: a high average oversubscription rate of almost three times of additional Notes was recorded.
( ) In April 2008, the three original Notes of US$7.00% maturing in May 2008, USD 7.375% maturing in June 2008 and USD 10.125% maturing in August 2008 were submitted to a Voluntary Exchange Offer for new Notes of USD 9% maturing in May 2014 ​​

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