Regulatory Alerts1997-12-19 | 6856Bonds that may be Issued by Lebanese Banks and Financial Institutions
Banque du Liban issued Basic Decision No. 6856 to regulate the issuance of bonds by Lebanese banks and financial institutions, mandating prior Central Council approval and detailed documentation including updated prospectuses, legal opinions, and audited financial statements. The Decision establishes strict eligibility criteria such as minimum capital thresholds, maturity periods of at least one year, and a 100% cap on cross-investments in other institutions' bonds, while introducing exceptional settlement procedures for custodied bonds and Clearstream transfers. Non-compliant institutions face administrative sanctions, and the Decision repeals previous regulatory texts while taking immediate effect upon publication in the Official Gazette.