Bank of Beirut is setting the stage to raise up to $100 million in equity through a new series of preferred shares. The new “K” shares will carry a 6.5 percent dividend, an official from the bank said Tuesday on condition of anonymity.
The new series replaces the “E” shares, valued at $60 million and carrying an 8 percent dividend, that matured and were taken out of trading on the Beirut Stock Exchange at the end of last year.
“Bank of Beirut had four options to redeem all the [‘E’] series at the end of 2015. We have done that after getting approval from the Central Bank,” the official explained.
The official said that investors were paid back the entire $60 million “E” share.
Lebanon’s Capital Markets Authority gave the approval last week to issue and market the “K” series, according to the source.
“We started marketing the product and we hope to conclude everything in two to three months,” the official said.
The dividend is paid to the investors after the announcement of the audited profits of the bank at the end of the year.
“The distribution of dividends hinges on profits. Once the general assembly approves the balance sheets, the bank starts distributing the dividends to investors,” the official said.
Bank of Beirut is one the six Lebanese banks listed on Beirut Stock Exchange.
