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Credit Libanais Investment Bank (CLIB)
Credit Libanais Investment Bank (CLIB) is Credit Libanais Group’s fully–owned investment banking subsidiary Total equity capital: USD 108.66 million as at year-end 2015 Total assets: USD 842.35 million at year-end 2015

Company Profile

 

Credit Libanais Investment Bank (CLIB) is 99.86% owned by Credit Libanais and was established in 1996.  It currently offers a wealth of services and investment banking activities in accordance with legislative decree number 50, dated July 1983. Through its team of dedicated professionals, Credit Libanais Investment Bank is constantly on the lookout for new business opportunities and strives to maintaining its strong specialized market position by spotting non-organic growth opportunities for the Group, as well as for local, regional and international private and institutional clients.

 

Summary of the Code of Corporate Governance


Given the financial intermediation role of Credit Libanais Investment Bank SAL in the banking sector and the economy, and the critical effects of sound governance on its perpetuation as a successful organization, and on public trust and confidence, the Bank is continuing in its efforts to enhance Corporate Governance, by preparing and implementing this Code of Corporate Governance which is intended to promote local and international Corporate Governance best practices.

 

Summary of Credit Libanais Investment Bank Code of Corporate Governance

 

 

Objectives


As Credit Libanais's investment arm, Credit Libanais Investment Bank (CLIB) offers a full array of advisory services and financial solutions for corporate customers, from term lending to highly structured and specialized products across the equity and debt capital markets. During 2015, CLIB analyzed and participated in several investment opportunities and was active in several local and regional mandates, including syndications and securitization deals. Consequently, the contribution of CLIB’s investment banking activities accounted for 11.16% of the Group’s consolidated net profits in 2015 in comparison with 11.81% in 2014.

 

Strategy


CLIB’s strategy pivots around strengthening its position in equity project financing and advisory services while continuing to provide a comprehensive bouquet of investment banking services through:

 

  • A complete set of medium and long term investment plans
  • Issuance of bonds and Certificates of Deposit
  • Arranging and participating in loan syndications
  • The establishment and management of investment funds
  • Granting medium and long term loans
  • Corporate finance and advisory services
  • Economic research

 

2015 at a Glance


2015 was mainly characterized by a sharp downturn in economic activity in the light of the strained internal political scene coupled with the uprising in the Arab region in the wake of the “Arab Spring”. Nevertheless, CLIB managed to maintain healthy growth in its commercial and investment banking portfolios. More specifically, CLIB positioned itself more favorably among its peers in 2015, achieving substantial growth in medium and long-term loans as well as in housing loans, where the collateral value does not fall below 60% of the loan amount at any time.

 

Apart from conventional commercial banking services, CLIB offers clients an array of investment banking services including:

  • Project financing
  • Direct equity participation in attractive activities or through synergistic partnerships
  • Debt and equity underwriting services
  • Raising capital for projects under advisory mandates
  • Investment funds' structuring and management
  • Financial intermediation
  • Corporate advisory services including due diligences and valuations, research and other complementary services

 

In addition to all this, CLIB, through its experienced investment banking team, is always keen on developing new financial products that respond to the ever-changing market and customers’ specific financial planning needs.

 

Corporate Finance and Advisory Department


Despite the uncertainties that characterized 2015, the Corporate Finance Department at CLIB strived to spot and analyze new investment opportunities in the region, with a particular emphasis on participating in debt syndication on behalf of multinational corporations. The department broadened the Bank’s exposure to diversified syndications’ portfolios that group various economic sectors including telecom, insurance, banking, real estate, fertilizers, etc. In addition, the department analyzed and financed several asset-backed securitization schemes on behalf of renowned local corporate clients. CLIB's advisory department successfully completed a due diligence, valuation and shares disposal transaction on behalf of a local car leasing company. 

2015 also saw the department analyzing several regional expansion ventures in the Greenfield stage or in the form of acquisitions. But tensions in the region significantly hampered banks’ aggressive decisions to expand their regional foothold.

 

Financial Advisory


CLIB's Corporate Finance Department provides corporate customers and the Group’s affiliates with financial solutions designed to meet the strategic and organizational needs of institutional clients. This includes offering financial assistance to clients by:

 

  • Evaluating the financial performance of their business
  • Assessing the viability of an expansion/investment alternative
  • Seeking financial reengineering/turnaround
  • Opening their capital to prospective investors
  • Merging with/acquiring another business unit
  • Assisting strategic alliances and partnering transactions

 

Debt & Equity Placements


CLIB's services encompass advising clients so they can make more informed decision regarding desirable capital structure, locating debt and equity financing sources, as well as negotiating and positioning their company ahead of the competition.

 

Mergers and Acquisitions


CLIB offers comprehensive assistance to clients seeking to merge with or acquire other private or public enterprise(s) in the same line of business (acquisitions) or in a complementary line of products (wrapped as a joint venture). CLIB provides indispensable professional support during every step of the transaction including:

 

  • Preparation of the sale
  • Determination of the strategy
  • Valuation of due diligence and the company
  • Road show  
  • Determination of the best financing structure
  • Raising equity/debt
  • Closing of the deal

 

Recapitalization and Strategic Advisory


CLIB helps clients with the restructuring of a company’s capital structure. This is most often done to make a company’s debt/equity mix more attractive and financially viable.

 

Debt Syndications


CLIB handles the structuring, pricing, underwriting, and raising of term debt financing for large corporate clients under a consortium of banks. CLIB also participates in loan syndications lead managed by pertinent international banks, subject to satisfactory due diligence.

  

Research Unit


The Economic Research Unit at Credit Libanais Investment Bank, and via its weekly economic newsletter, sheds light on major local economic developments as well as the local money market, fixed income and equity markets. In this perspective, the Economic Research Unit continued to widen the global reach of its economic research publications through weaving new alliances with highly frequented financial portals and renowned newswires. Aside from its weekly economic newsletter, the research unit also issued and distributed a number of research publications in the year 2015 including a thorough analysis and econometric model pertaining to the discovery of oil and gas reserves in Lebanese waters and the possible ramifications for said discovery on the country’s macro indicators.

The research publications succeeded in stealing the spotlights in the headlines of the economic sections of major local and regional TV stations, newspapers and bulletins. In addition, the Economic Research unit conducted several interviews with local and foreign television stations, newspapers and magazines, addressing a variety of hot economic topics with constructive ideas. The Research Unit continues to monitor the daily performance activity of the Beirut Bourse (BSE) under the umbrella of its stock market benchmarks, namely the Credit Libanais Aggregate Stock Index (CLASI), the Financial Sector Stock Index (CLFI) and Construction Sector Stock Index (CLCI). These three indices mirror to local and regional stock market enthusiasts trends in the market capitalization of listed stocks by sector or industry and can be used as a gauge to monitor the Beirut stock exchange’s daily performance.