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Summary of Project Information (SPI) |
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| Project number | 8678 |
| Project name | Banque Audi SAL: Subordinated Debt Issue |
| Country | Lebanon |
| Sector | Finance & Insurance |
| Department | Global Financial Markets Group |
| Company name | Banque Audi S.A.L. |
| Environmental category | C |
| Date disclosed | October 7, 1997 |
| Status | Completed |
| Previous Events | Invested: December 16, 1997
Signed: December 16, 1997
Approved: November 26, 1997 |
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Summary Of Project Information (SPI)
| Project Name | Lebanon-Banque Audi Sal: Subordinated Debt Issue |
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| Region | Central Asia, Middle East and North Africa |
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Project No008678
Projected Board DateNovember 7, 1997
Company NameBanque Audi Sal
Technical Partner and/or Major Shareholders
The Bank’s major shareholders are the Audi Group (22%)and Kuwaiti investors (36%).
Project Cost Including proposed IFC investment
Total project Cost: US$75-100 million, including IFC A Loan investment of US$20.
Location of project and Description of site
Lebanon
Description of Company and Purpose of Project
The project involves assisting Banque Audi Sal (Audi, the Bank), an existing IFC client and a leading bank in Lebanon, in raising US$75-100 million of 10-year subordinated Eurobonds to increase its Tier II capital. This would be the first international subordinated bond offering in the Middle East. IFC would invest US$20 million and would thus provide support in ensuring that the issue is successful.
The Eurobond issue, which would essentially double the equity base of Audi, would allow a leading commercial bank to play a more important role in the reconstruction of Lebanon and lead the expansion of the Lebanese financial sector. IFC has a significant role in participating in this project due to its long-standing relationship with the sponsor and a shared commitment to strengthen the Lebanese financial sector. The subordinated Eurobond issue is an important source of support for Audi’s capitalization efforts, and Audi’s management is keen on IFC’s positive impact in its participation. As an investor, IFC would provide support in ensuring that the issue is successful. IFC’s presence would help in attracting investors by sending a clear signal to international investors of IFC’s confidence in the management of Audi.
Environmental Category and Issues
This is a category C project according to IFC’s environmental review procedure. No further environmental review is required.
| Date SPI sent to PIC | October 7, 1997 |
“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”
For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 974-4384 |
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