Bank of Beirut SAL (BoB) said it raised $14 million for its open-ended fixed income fund in a first round of financing. Lebanese institutions and individuals accounted for 60 percent of subscriptions while Arab and European subscribed to the remaining 40 eprcent.
The bank hopes to raise $25-35 million over the next five years. BoB along with the Dubai-based Emirates Bank International and Banque Pictet of Luxembourg, launched in October the Beirut Income Fund, the first fixed income fund to invest in Lebanese sovereign and corporate securities denominated in foreign currencies.
It plans to invest a minimum of 60 percent of its assets in sovereign bonds and up to 35 percent in corporate eurobonds. Returns to investors are expected at 10 percent in the first year. BoB manages the Beirut Income Fund while Pictet is the custodian. The fund is registered in Lebanon and is regulated by the Central Bank of Lebanon. — ( Lebanon Invest )