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Lebanese banks make plans to delist overseas as capital deadline looms
By Tony Akleh -- arabianbusiness.com -- The ongoing economic crisis in Lebanon has placed additional pressure on the banking system, prompting lenders to delist global depositary shares (GDS) from international stock exchanges. The move has been taken to minimise unnecessary costs outside Lebanon in order to meet the challenge of raising their capital by February 2021. If they can't raise capital by 20 percent, they risk having to exit the market, according to a directive sent out by Riad Salameh, governor of Lebanon's central bank. BLOM Bank has applied for the withdrawal of its GDSs from trading on the EUROMTF and the Official List of Luxembourg Stock Exchange, as well as for the withdrawal from trading on the London Stock Exchange, with a proposed implementation of November 24. BLOM Bank has applied for the withdrawal of its GDSs from trading on the EUROMTF and the Official List of Luxembourg Stock Exchange Prior to this decision, the traded GDSs witnessed low volumes and limited liquidity this year, making administrative costs outweigh the benefits. The GDSs and its underlying shares will continue to trade on the Beirut Stock Exchange. Bank Audi has also announced that it has applied for the cancellation of the listing of its global depository receipt (GDR) from the London Stock Exchange with effect from November 16 although they will continue to be listed and traded on the Beirut Stock Exchange. |