The capital increase plan will be carried out though issuing 142.4 million shares at a price of $1.75 per share, said Alain Wanna, chief financial officer at Byblos Bank. Each share has a par value of 80 cents ($0.80) and a premium of 78 cents ($0.78). Each shareholder will have the right to buy one share for each three shares he owns.

"The capital increase plan aims to support expansion of the bank locally, regionally and internationally," Wanna said. It is also part of the bank’s long-term strategy to incorporate new banks to its portfolio, he said.

Wanna said that the capital increase plan which is still pending an approval from the Central Bank will be finalized before June. He said that shareholders requested that the capital increase plan commences after 2009 dividends are distributed.

The GA will convene in April to approve the proposed dividend of ten cents per share.

The capital increase plan will commence after obtaining the approval from the Central Bank, approving and distributing the dividends which is planned to be finalized by the end of April.

The rights will then be traded on the Beirut Stock Exchange (BSE) for a two to three week period, where shareholders who do not wish to acquire new shares may sell their rights to someone who does, or other shareholders can buy all the rights they are offered in the issue.

Holders of the rights can then subscribe to the capital increase in a period of one week to ten days, Wanna said.