New investment bank

BLC Invest to focus on private equity in Lebanon and MENA

BLC Bank has launched BLC Invest, its news investment banking arm. The new entity was licensed in March by the Central Bank to operate as a specilaized bank.

BLC Invest’s general manager, Fouad Rahme, said that the new bank will focus on private equity operations: “Lebanese products have been gaining in popularity and are now widespread, as such Lebanese manufacturers will need investors in order to expand their business."

Rahme said that BLC Invest will focus on Lebanon and other countries in the MENA region. “We have the knowhow and the language skills (to make investments across the region),” he said.

According to Rahme, the local financial sector needs more investment banks. “These banks are the best way to boost economic growth and thus contribute to cutting the country’s debt to GDP ratio.”

He said that investment banks in Lebanon are more focused on private banking and wealth management than on actual investments, and that they often invest in Treasury Bills.

Monetary authorities are working to amend the laws governing investment banking.

“They are calling on investment banks to distribute their investments equally between the private and the public sectors,” said Rahme.

He said that monetary authorities are encouraging the adoption of laws that would activate the Beirut Stock Exchange (BSE). He said that BLC Invest will advise private firms to get listed on the BSE, and to encourage them to do so will aquire a minority stake in these companies.