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FRANSABANK closed the issuance of its Preferred Shares of USD 100 million against an initial issue size of USD 60 which was primarily raised by the Bank at the launching of the issuance process, and subject to a maximum increase of USD 80 million. In fact, the real subscription value by investors amounted to 103.81 million, 1.3 times the value of the issued shares.
The preferred shares that FRANSABANK has enlisted for subscription to investors from Lebanon and abroad are Tier I, non cumulative, convertible, redeemable series A preferred shares. Fransa Invest Bank, the investment arm of FRANSABANK, was the placement agent for this issue.
HE Mr. Adnan Kassar, Chairman and CEO of FRANSABANK Group, declared: “We thank all the collaborators in the subscription process of our Preferred Shares for their vast confidence in our Bank and its financial strengths, its prospected growth and development, as well as its business strategy at all levels whether locally or internationally.”
Kassar pointed out that the high investors’ demand on the issuance of shares came from private and institutional investors both in Lebanon and abroad, whereby the allocation of the preferred shares reached 55% for Lebanese and 45% for non-Lebanese.
Kassar added: “Many reasons make this issuance an outstanding success. Defying the critical and subtle circumstances that Lebanon experienced and which we hope that the Doha Agreement will eradicate and leave behind to no return; in addition to the unfavorable international developments that the global banking industry and financial institutions are witnessing, particularly the financial and the mortgage real estate crisis in U.S.A and its negative repercussions in more than one state and market in the world are all indicators to this success. This is in addition to the annual return of 8.50% and the heavy demand that the issuance received from investors that proves once again the confidence in Lebanon and its banking industry despite all the known facts. Moreover, the issuance constituted a milestone in view of its general conditions, speed of closure and size.”
Kassar concluded: “We will employ the results of the issuance, which will nourish our net Tier I Capital, in supporting our expansion strategy in emerging and promising economic and financial markets of the region, and also in promoting the organic growth of our Bank internally. This will contribute to the advancement of our position within both the Lebanese and Arab banking sectors, as well as strengthen our reputation in the international markets as a leading banking institution, having a vital financial and economic role in Lebanon and the region. "
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