Bank of Sharjah and BNP Paribas in regulatory filing for partnership agreement 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.

Through this acquisition, clients will be able to benefit from a continuing relationship with their bank as well as an enhanced offering of products and services.

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, disclosed 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 $50m while injecting a cash contribution to capital of $100m in order to boost equity to $150m.

Today, the Lebanon operation is considered as a platform for the Bank of Sharjah's future expansion in the Levant where it intends to benefit from exceptionally strong synergies with its Gulf-based clientele.

BNPI has been present in Lebanon since 1944. It engages in commercial banking activities through a network of five branches.

At end 2007, it boasted an asset base of around $850m serving 13,500 individual clients and 1,300 corporates.