Algiers – On Monday, January 20, 2025, Banque de Développement Local (BDL) officially launched its capital-opening process through a public offering on the Algiers Stock Exchange. The process involves the sale of 44.2 million new shares at a price of 1,400 DZD per share.
The issuance, which runs until February 20, 2025, aims to raise a total of 61.88 billion DZD. Of this amount, 44.2 billion DZD will be allocated to increasing the bank’s capital, while the remaining 17.86 billion DZD will serve as an issuance premium. By the end of this operation, BDL’s capital is expected to increase from 103.2 billion DZD to 147.4 billion DZD.
Details of the Public Offering
This offering is open to all categories of investors, including individuals, companies, and institutional investors. Shares can be purchased through BDL’s commercial branches or via authorized financial intermediaries.
The distribution of the shares offered for sale, which represent 30% of the bank’s social capital, is as follows:
- 17.68 million shares (40% of the total offering) are allocated to individual Algerian investors.
- 13.26 million shares (30%) are designated for institutional investors.
- 13.26 million shares (30%) are reserved for companies and legal entities.
A minimum subscription of 10 shares is required for participation.
Six public banks, namely the Algerian National Bank (BNA), Algerian Foreign Bank (BEA), National Savings and Reserve Fund (CNEP-Bank), BDL itself, Crédit Populaire d’Algérie (CPA), and Agriculture and Rural Development Bank (BADR), will facilitate the sales process. Additional intermediaries include Société Générale Algérie, Tal Market, and Invest Market.
Shareholder Benefits
According to BDL General Manager Youssef Lalamas, investors participating in this offering will benefit from a guaranteed financial return and an annual yield of up to 13%. Additionally, they will receive 4.75% of the bank’s profits for 2024. Notably, these profits will be tax-exempt for a five-year period.
Awareness Campaign and State Approval
BDL has been conducting a nationwide awareness campaign to inform citizens and investors about the capital-opening process and subscription methods. According to BDL’s Deputy General Manager for Commercial Affairs, Mohamed Mubarak, the campaign has garnered significant interest and will continue to cover all regions of Algeria.
This initiative follows the State Contribution Council’s decision on December 4, 2024, to approve the partial opening of BDL’s capital by 30%, paving the way for the bank’s listing on the Algiers Stock Exchange. Later in the same month, the Commission for the Organization and Supervision of Stock Exchange Operations (COSOB) approved the public offering memorandum.
A Historic Milestone
This marks the second time a public bank in Algeria has opened its capital through the stock market. The first was Crédit Populaire d’Algérie in 2024.
For more updates and financial insights, visit our website: DZWATCH.DZ
Author: Nor-Eleslam