Lebanon’s Bank Audi has collected $210 million in cash contributions as part of the first phase of the increase of equity that was requested from all banks by the central bank.

In order to increase the banks’ ability to defy the spiraling financial crisis that has hit the country, the Central Bank of Lebanon, also known as Banque Du Liban (BDL), in November 2019, instructed local lenders to raise their capital by 20 percent by the end of June 2020, 

Bank Audi, the country’s biggest bank by total assets, said that the contribution and its conversion into common shares remain subject to the approval of BDL.

In January, First Abu Dhabi Bank (FAB), announced that it is in discussions with Bank Audi to acquire its fully-owned subsidiary in Egypt.

Currently, no valuations have been announced and there is no certainty that these discussions will result in a transaction, which is subject to regulatory approvals.

Moody’s Investors Service said that the bank’s sale of its Egyptian unit is credit positive.

(Reporting by Gerard Aoun; editing by Seban Scaria)

(Gerard.Aoun@refinitiv.om)

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