The Local Development Bank (BDL) is embarking on a significant chapter in its history by partially opening its capital. Starting from January 20, 2025, investors will have the opportunity to acquire shares in this public bank through a public offering of shares (OPV).
This operation presents a rare opportunity for both individuals and Algerian companies to participate in the evolution of the country’s banking system. By providing direct access to the capital of a major public bank, the initiative aims to attract a wide range of investors and enhance the institution’s financial capabilities to meet the growing demands of the market.
Public Offering for 44.2 Million Shares
The BDL will offer 44.2 million shares for sale, representing 30% of its share capital. Each share will be priced at a fixed rate of 1,400 Algerian dinars. This sale will run for one month, from January 20 to February 20, 2025.
The primary goal of this initiative is to raise 61.88 billion dinars, with 17.68 billion dinars designated as an issuance premium. Following this operation, BDL’s share capital will increase from 103.2 billion dinars to 147.4 billion dinars, thereby strengthening the bank’s financial standing.
An Offering Designed for Various Investor Profiles
To ensure broad participation, BDL has segmented the share distribution into three main categories:
- 40% of the shares are allocated to individuals, including those interested in investing in the bank’s capital.
- 30% of the shares are reserved for legal entities, such as businesses and institutions.
- 30% of the shares are designated for professional investors, like fund managers and major financial institutions.
A minimum subscription of 10 shares is required to participate in the offer, allowing many investors, including small shareholders, to get involved.
Key Players to Support the Operation
The offering will be managed by several stock exchange intermediaries (IOB), including six Algerian public banks:
- National Bank of Algeria (BNA),
- External Bank of Algeria (BEA),
- CNEP Bank,
- BDL itself,
- Popular Credit of Algeria (CPA),
- Bank of Agriculture and Rural Development (BADR).
Private institutions like Société Générale Algérie, Tell Market, and Invest Market will also handle sales. This diversity of intermediaries aims to ensure widespread distribution of the shares offered.
A Project Aligned with Financial Sector Modernization
The opening of BDL’s capital fits into a broader strategy for modernizing Algeria’s financial sector. This initiative, approved by the State Participation Council (CPE), seeks to list the bank on the Algiers Stock Exchange and expand investment opportunities for Algerians.
According to Youcef Bouzenada, president of Cosob, this operation offers national investors a unique chance to become shareholders in a major public bank. Meanwhile, BDL’s General Director, Youssef Lalmas, emphasized that this move reflects a commitment to enhancing transparency and competitiveness in the banking sector.
An Information Campaign for Investors
To ensure the success of the operation, BDL plans a comprehensive communication campaign. This effort aims to explain the benefits of investing in the bank and inform investors about the subscription modalities. A press conference is already scheduled for January 7, 2025, to provide more details on this public offering.
The partial opening of BDL’s capital marks a turning point for the Algerian banking sector. This operation is not just about raising funds; it also aims to strengthen the role of the Algiers Stock Exchange in corporate financing. By giving Algerians the chance to become shareholders in a public bank, this project could invigorate the national economy while modernizing the financial sector.
With an accessible price and clear conditions, this initiative could attract both small investors and seasoned professionals. The real test will be to see if there’s significant enthusiasm when subscriptions open.
