Related to Perpetual Preferred Shares

Notice No. 94
Addressed to Licensed Institutions
Related to Perpetual Preferred Shares (Perpetual)

Based on Law No. 161 dated August 17, 2011 regarding Financial Markets, Based on the Financial Markets Rules of Operation System Series 3000 issued by the Capital Market Authority on November 10, 2016, Based on Capital Market Authority Board Decision No. 23/4/2 dated May 9, 2023, Given the safety of the banking system and public interest in the current exceptional circumstances currently passing through the country, We inform you as follows:

First: Notice No. 90 issued by the Capital Market Authority on February 15, 2023 is repealed and replaced by this notice.

Second: Subject to the provisions of Clause 4 of Article 3311 of the Financial Markets Rules - Series 3000, particularly regarding Perpetual Preferred Shares issued by Lebanese banks, licensed institutions, bearing full responsibility, shall undertake the following:

1. Ensure that Perpetual Preferred Shares issued by Lebanese banks and held in clients' portfolios reflect prevailing market prices at which they are or may be traded.
2. Licensed institutions must comply with the above clause, suspending immediately if prior valuation is unavailable for pricing these shares in client statements and replacing the available value with "unavailable", until a proper and fair market valuation is conducted.
3. Licensed institutions are also requested to review the deposit fees charged on these shares, taking into consideration the current situation.

Third: This notice takes effect immediately upon its publication in the Official Gazette.

Beirut, May 23, 2023
Chairman of the Capital Market Authority / Governor of Bank of Lebanon Riad Toufic Salameh