BQAD.L Regulatory News (BQAD)

Press Release 

Not for distribution in or into the United States of America or any other jurisdiction where the distribution or release would be unlawful

BANK AUDI'S CAPITAL INCREASE COMPLETED

Beirut, September 23, 2014

FOR IMMEDIATE RELEASE: Bank Audi (ISIN: LB0000010415) has completed a US$ 300 million capital increase by way of (i) a US$ 240 million rights offering of common shares initially to existing shareholders (including GDR holders) of the Bank and (ii) a US$ 60 million subscription of common shares by International Finance Corporation ("IFC"), a member of the World Bank Group. The subscription price per common share was US$ 6.00, and eligible subscribers were allocated three warrants per common share subscribed entitling to purchase one common share of the bank's Turkish subsidiary, Odea Bank for each warrant. Fifty million common shares of Bank Audi were issued in the capital increase, as well as 149,528,847 Warrants, representing approximately 10.0% of Odea Bank's common shares.

There was an initial take up of 87.1% of the rights issue by existing shareholders (including a take-up of 94% by holders of the Bank's Global Depositary Receipts (GDRs), with the balance taken up in full through residual subscriptions by existing shareholders).

The proceeds of the capital increase will be used to extend the Bank's financial flexibility, strengthen its regulatory capital and support its business development within and mostly outside Lebanon.

Samir Hanna, Group CEO of Bank Audi, commented: "We are very satisfied with the success of this transaction, which was conducted in difficult regional conditions and showed the confidence of existing and new shareholders, including IFC, in the Bank's performance and direction. The partnership with IFC will further assist the Bank in expanding our access to underserved segments, such as small and medium enterprises and support our planned expansion to new jurisdictions, in particular where IFC has significant in-country knowledge and experience."

About Bank Audi

Bank Audi is a fully fledged regional bank with a presence in 13 countries. It offers universal banking products and services, including corporate, commercial, retail, individual, investment and private banking services. As of 30 June 2014, Bank Audi's consolidated assets were US$ 39.3 billion, private customers' deposits were

US$ 34 billion and shareholders' equity was US$ 2.7 billion (pre-capital increase). Bank Audi has approximately 6,150 employees, and its shareholder base encompasses more than 1,500 holders of common shares and GDRs. The common shares and the GDRs are listed on the Beirut Stock Exchange and the GDRs are also listed on the London Stock Exchange.

Bank Audi ranks first among Lebanese banks by consolidated total assets, deposits, loans and shareholders' equity and among the top Arab banking groups in the Middle East and North Africa region. For more information, visit www.banqueaudi.com.

Stay Connected:

www.facebook.com/BankAudiLebanon

www.youtube.com/BankAudiGroup

For more information:

Dr. Freddie C. Baz

General Manager - Group CFO & Strategy Director

Tel: +961 1 977 477

Email: Freddie.baz@banqueaudi.com