Part Two

Structure of Investment Banking

Organizational structure of an investment bank

An investment bank is split into the so-called:
Front office Middle office, and Back office

Organizational structure of an investment bank cont.

Front office
Investment management Sales and trading Structuring Research

Organizational structure of an investment bank cont.

Middle office
Risk management Corporate treasury Financial control Corporate strategy compliance

Back office
Operations Technology

Risk management
Major risks investment banks face
Market risk
Equity prices Interest rates FOREX

Credit risk
Derivatives

Operating and reputation risk

Operational failure Regulatory risk

Risk management Cont.

Legal risk
Regulatory capital requirements Sales and trading practices New products Money laundering

Funding risk
Maintain cash position Borrow in the debt market

Investment banks in Lebanon

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. AUDI SARADAR INVESTMENT BANK S.A.L. BANQUE DE L'HABITAT S.A.L. FINANCE BANK S.A.L. BLOMINVEST BANK S.A.L. MEDITERRANEE INVESTMENT BANK S.A.L. CREDIT LIBANAIS INVESTMENT BANK S.A.L. ARAB INVESTMENT BANK S.A.L. FRANSA INVEST BANK S.A.L. BYBLOS INVEST BANK S.A.L. GAZPROMBANK-INVEST (MENA) S.A.L. FFA PRIVATE BANK S.A.L. BANK OF BEIRUT INVEST S.A.L. CSCBANK S.A.L. IBL INVESTMENT BANK S.A.L. CEDRUS INVEST BANK S.A.L.

AUDI SARADAR INVESTMENT BANK S.A.L.

Asset Management: Asset Management includes structuring and management practice focusing on regional equity funds, public debt, private equity and venture capital, as well as portfolio management services tailored to accommodate different clients needs. A team of dedicated and experienced portfolio managers backed by a strong research team will help in advising on strategic asset allocations and structuring portfolios within different asset classes. Corporate Finance: The activities of Audi Capitals Corporate Finance consist of two main practices: Financial Advisory (M&A, restructuring advisory services) Underwriting (arranging public and private debt and equity offering)

AUDI SARADAR INVESTMENT BANK S.A.L.

Wealth Management: Audi Capitals Wealth Management division primarily offers wealth management (custom-made advisory depending on clients risk profile and goals) and sales services (improving Group placement power by developing a diversified customer base and a broker network designed to channel Group products and services). Brokerage: Brokerage activities focus on delivering premium brokerage services to high net-worth individuals and ensuring proper execution of transactions related to funds and portfolios under management.

BLOMINVEST BANK S.A.L.

Advising clients on initial and secondary equity offerings. Providing private placement advisory services to companies willing to open-up and/or increase their capital. Offering debt capital markets advisory services (project finance, mezzanine debt, corporate bonds and Eurobonds to corporates, projects and sovereigns). Offering strategic financial advisory services to clients in the private and public sectors such as acquisitions, divestitures, corporate restructurings, cross-border transactions Sponsoring, structuring and carefully managing selected real estate projects through our newly established Real Estate Unit.

MEDITERRANEE INVESTMENT BANK S.A.L.

Foreign Exchange Desk Spot purchase/sale of foreign currencies against the Lebanese Pound. Spot and Forward purchase/sale of foreign exchange crosses. Spot and Forward purchase/sale of precious metals. Capital Markets Desk Access to primary and secondary government debt markets in both local and foreign currencies. Yield enhancement solutions built around money market instruments Access to the Beirut and Amman Stock Exchanges

MEDITERRANEE INVESTMENT BANK S.A.L.

Money Markets Desk Access to the local and foreign interbank markets. Access to the Repo market and to the structuring of funding transactions. Access to the different market for short term highly rated and highly liquid securities. Treasury Marketing Unit Exposure management strategies for hedging risk on foreign exchange and interest rates. Structuring of Investment Products.

CREDIT LIBANAIS INVESTMENT BANK S.A.L.

Fixed Income: Credit Libanais is a market maker on all Lebanese government fixed income securities, maintaining an important presence on primary and secondary markets for Lebanese Government T-bills and Eurobonds. Furthermore, Credit Libanais provides customers with access to all major international fixed income markets, coupled with a follow-up of the markets latest developments in debt issuing. Foreign Exchange: Credit Libanais trades all major foreign currencies and is a market maker on domestic currency as well. We provide reliable and secure online Forex services at the most competitive rates.

CREDIT LIBANAIS INVESTMENT BANK S.A.L.

Equities: Credit Libanais extensively covers the major regional and international stock markets, namely the US and Europe. The Bank operates a seat at the Beirut Stock Exchange (BSE) through Credit Libanais Investment Bank.

CREDIT LIBANAIS INVESTMENT BANK S.A.L.

Investment Alternatives: provides customers with a variety of continuously renewed alternative opportunities for investment and the latest in financial engineering and strategies: Structured Products: covering a large variety of underlying such as interest rates, Forex, equities, indices and commodities. Hedge Funds: designed to specifically address your diversification needs; offering potential returns which are not correlated with broad based market trends and fluctuations Other investments include Mutual Funds for a conventional approach to capital enhancement and Islamic Products for more specific investment needs

ARAB INVESTMENT BANK S.A.L.

Corporate Finance and Capital Markets Syndicated lending / debt underwriting Acquisition financing Capital Market Advisory Services Fixed Income Securitization

FRANSA INVEST BANK S.A.L.

Brokerage Services: FIB provides brokerage services on Cash, Futures and Options Markets for a wide range of financial products (currencies, shares, bonds, commodities) and on different financial markets with full time coverage (local, regional and international e.g. New York, Paris, London) Research Services: FIB provides clients on a daily basis with accurate information and analysis on: Fundamental and technical aspects Micro and macro economics Research from the top international banks (Morgan Stanley, Citigroup, Julius Baer, Socit Gnrale, )

FRANSA INVEST BANK S.A.L.

Asset Management: FIB provides clients advice, expertise and solutions for the accumulation, protection, distribution and management of their wealth. This service comprises of: Assessing the clients assets and liabilities Examining their needs, goals and tolerance for risk Providing them with independent and unbiased advice Developing a comprehensive wealth management strategy in order to reach the clients specific financial targets

FRANSA INVEST BANK S.A.L.

Corporate Finance Mergers & Acquisitions Equity Raising: Valuation, Valuation , Initial Public Offerings (IPO), Private Placements Medium to Long Term Debt Raising Project Finance Debt (Medium-to-Long Term) Equity Financial advisory services to the Public Sector (Government, Public Institutions, NGOs): Bond issuance, privatization... Investments & Participations (proprietary)

BYBLOS INVEST BANK S.A.L.

Fixed Income Products And Services Covered Lebanese Eurobonds US Treasuries and Agency Bonds Supranational and Sovereign Bonds Eurobonds, Emerging Debt (MENA, LATAM, BRIC, Western Europe, etc.) Perpetual/Preferred Shares Sukuks Access to New Issues (Government, Corporate) Conventional Structured Products Tailored Structured Products

BYBLOS

INVEST BANK S.A.L.

Equities Markets And Products Covered Lebanese Equities (Beirut Stock Exchange and over-the-counter shares) US Equities (Dow Jones, NASDAQ, NYSE, etc.) European Equities (DAX, CAC40, FTSE, etc.) Canadian Equities (TSX, VANC) Gulf Cooperation Council and other Middle Eastern Countries US and European Options (Long and Short) Exchange Traded Funds Equity Research and Analyst Recommendations

BYBLOS INVEST BANK S.A.L.

Foreign Currencies and Precious Metals
Products Covered Plain Spot Deals Forward Deals (for Commercial Clients) Spot Speculation (Leveraged Accounts) Currency and Metal Options Dual Currency Deposits for Higher Yields

BANK OF BEIRUT INVEST S.A.L.

Asset Management Corporate Treasury and Financial Markets Fixed Income Products Treasury and Forex Services

GAZPROMBANK-INVEST (MENA) S.A.L.

Precious Metals Trading Financing (short- and long-term) of precious metals mining and processing companies, including loans in precious metals. Precious metals trading: real-time purchases and sales based on the London precious metals market prices, commission and export transactions, market risk hedging operations. Unallocated metal accounts for corporations: purchase and sale of precious metals via unallocated metal accounts.

GAZPROMBANK-INVEST (MENA) S.A.L.

Debt financing Issuance of ruble corporate bonds; Issuance of ruble stock bonds; Issuance of ruble bank bonds; Issuance of ruble bonds for Russian Federation constituencies and municipal entities; and Issuance of CLN/LPN Eurobonds denominated in Russian rubles or a foreign currency.

GAZPROMBANK-INVEST (MENA) S.A.L.

Brokerage Services Gazprombank provides its clients with access to trading in different asset classes on the main Russian platforms: - MICEX shares and corporate bonds, Russian depositary receipts, sovereign bonds. - RTS (FORTS) futures and options on shares and bonds issued by the leading Russian companies, as well as on indices and commodities. - OTC market.

GAZPROMBANK-INVEST (MENA) S.A.L.

IPO and Underwriting Full support and arrangement of the whole transaction; Placement among the broad Russian and foreign investor base; Listing on Russian and international stock exchanges; Substantial pre-marketing efforts and road shows to support placement. Corporate Finance (M&A) Mergers and acquisitions (M&A) advisory; Finance raising from private equity funds; Consulting services on equity stake swaps; Joint venture structuring advice.

GAZPROMBANK-INVEST (MENA) S.A.L.

Project and Structured Finance The Bank offers its clients a variety of long-term financing products and instruments that comply with the clients needs in capital-intensive projects for business development through internal growth of the company using various types of project financing and investment lending or by acquisition of existing businesses (&A and LBO/MBO transactions; subordinated, quazi-equity financing, etc.).