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Junior/ Senior Notes Program

CIS successfully introduced derivative products on the Lebanese Capital Markets with its Junior/Senior Notes Program, a derivative product of the Lebanese Treasury Bill.

The first Series (Series 1) was issued on May 9, 1994 and, thereafter, nineteen additional Series have been issued. Total issue size for the twenty Series exceeds U.S. $298 million and maturities range between 6 and 24 months.

Categories of Notes

The Notes are denominated in U.S. Dollars and are divided into two categories:

  Senior Note: an instrument that is protected against a substantial depreciation of the Lebanese Pound (LBP) and bearing a coupon.

  Junior Note: a speculative instrument that is highly affected by an eventual fluctuation of the LBP/USD exchange rate, without coupon.

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  Lebanese Securities, Inc.

The proceeds of the subscription are invested in Treasuries of the Lebanese Republic.

The size of our new Junior/Senior Notes Program started in May 1996 was increased from U.S. $100 million to U.S. $300 million to satisfy increasing demand for these securities. Under this Program, the Notes are issued by the Lebanese Securities, Inc., a company incorporated in the British Virgin Islands and whose sole purpose is to issue Junior/Senior Notes. The Program is structured as follows:

  Capital Investment Services s.a.l. acts as Arranger, Servicer and Placement Agent for Lebanese Securities, Inc.

  The subscription proceeds are credited to an Escrow Account with the Royal Bank of Canada, London (RBC).

  RBC acts as Trustee, Escrow Agent, Custodian and Paying Agent.
The Noteholder may have his Notes credited with Euroclear or Clearstream.

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eturns on investment have been, as of today, very attractive. Results for the matured Series are as follows: (Issue size in millions of U.S. Dollars)

  Series 1 [May-94] , Series 2 [Oct-94] , and Series 3 [Jul-95]  (view)

  Series 4 [Oct-95] , and Series 5 [Nov-95]  (view)

  Series 1* [May-96] , Series 3 [Nov-96] , and Series 4 [May-96]  (view)
    * first Series under the Lebanese Securities, Inc. Program

  Series 2 [Sept-96] , Series 5 [Jan-97] , and Series 6 [Mar-97]  (view)

  Series 7 [May-96] , Series 8 [Jul-97] , and Series 9 [Feb-98]  (view)

  Series 10 [Oct-98] , Series 11 [Mar-99] , and Series 12 [Oct-99]  (view)

  Series 13 [May-96] , and Series 14 [Feb-98]  (view)

Hereafter, is the indicative information on the outstanding Series:

  Series 15 [Nov-01]  (view)

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