Bank of Sharjah Wins
(19 May 2009)

 

The Magazine has selected only one winner for each of 10 categories across the Middle East region from over 480 entries for the “Deals of the Year” titles. Judges used a wide range of criteria in selecting the winning deals with an emphasis on the degree to which client objectives were met as well as the deal complexity, innovation, speed of execution and pricing performance.

 

Bank of Sharjah won the award because of many elements starting with the adverse market conditions- as it was among the first significant deals to go through in Lebanon following the July 2006 war, the unstable security situation and the ensuing constitutional vacancy due to a political deadlock.

 

Moreover, this Deal was a real premiere, as never before had a UAE-based bank acquired a majority stake in a Lebanese bank. This pioneering move is expected to start a new trend as more Gulf banks look at expanding in the dynamic Levant. Strategically, the Deal has allowed Bank of Sharjah to create a platform in the Levant through Emirates Lebanon Bank s.a.l. asserting itself as a key regional player.

 

The funding and timing were also critical in the decision to award Bank of Sharjah with the “Deal of the Year 2009”. In anticipation of this transaction, BOS raised through its oversubscribed debut syndicate loan an amount of USD 200 million at a pricing of 35bps over Libor. Indeed, the syndicate loan occurred right before the subprime crisis. In retrospect, this loan was perfectly timed and executed with a very favorable pricing compared to what it would have been 1 or 2 months going forward.

 

However, it was the positive results and the feedback that made this Deal a real success. The challenge has been to ensure a smooth continuity between the operations of the bank, the satisfaction of its customers and the setting up of Emirates Lebanon Bank s.a.l. To ensure success, all staff members of Emirates Lebanon Bank s.a.l. were involved in the process through a sustained and transparent internal communication effort. 

Feedback and support were highly positive from Regulators, Clients and the Business Community at large. This was aided by a massive communication campaign that established Emirates Lebanon Bank s.a.l. within a short span of 3 months as one of the leading banking institutions in Lebanon.

 

Varouj Nerguizian, Chairman of Emirates Lebanon Bank s.a.l., Executive Director and General Manager of Bank of Sharjah has stated that this deal comes to crown the upgrade in Lebanon’s ratings in recognition of the ability of the Lebanese banking industry to weather the storm within the current worldwide financial situation. Transparency has been the key to success of this transaction and the board of BOS remains extremely positive when it comes to Lebanon’s financial outlook.