Housing Solutions for AUB Teachers. April 2011

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Quentin Shanon Little
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1 Housing Solutions for AUB Teachers April 2011

2 I. Introduction 02 II. Pooled Negotiation Proposal 03 III. Project Development Proposal 04 IV. BLOM Housing Loans 05 V. BLOM Retail Products & Services 09 VI. BLOM Credentials 10

3 I. Introduction The AUB is seeking a full fledged housing solution for its professors. BLOM Bank is pleased to present a TAILOR MADE PROPOSAL, including the following: A Pooled Negotiation Proposal through which BLOM would negotiate with developers the most efficient conditions for the acquisition of a pool of apartments. A Project Development Proposal, whereby the bank would act as the sponsor for the construction of one or more residential buildings destined to the professors. The full range of housing loans extended by BLOM Retail ensuring best in breed financing conditions. 2

4 II. Pooled Negotiation Proposal If the choice is to acquire apartments in existing buildings or already launched projects, BLOM Group can assist in the following: We can negotiate the most optimal conditions for the acquisitions of apartments, provided there is a sufficient pool of units to be acquired. We would negotiate with our network of residential developers to find the most attractive pooled proposal to submit to AUB s teachers. Concurrently, BLOM could extend the corresponding housing loans and offer its full range of retail services mentioned in part IV. 3

5 III. Project Development Proposal Provided we can identify a pool of teachers wishing to acquire a residence in the same region / area, we could offer an improved service in comparison to the previous one We would be able to sponsor, structure and manage the construction of one or more residential buildings These buildings would be tailor-made to the teachers needs in terms of geographical location, surface areas of the apartments, finishing standards. The main advantage of such a proposal to teachers would be the economy they would achieve in terms of prices, as such a project would allow them to buy at a discount compared to fair market prices. That discount stems from the fact they would commit to the project, under a presales structure, or through an equity/partnership structure. Similarly to the previous proposal, BLOM could extend the corresponding housing loans and offer its full range of retail services mentioned in part IV. 4

6 IV. BLOM Housing Loans A- Housing loan in cooperation with the Institution of Public Housing For professors with household income below 5 million LBP Up to 270 million LBP No down payment No registration fees or stamp fees Interest rate: 20% Treasury Bills for 2 years (4.57%) Period: 30 years 5

7 IV. BLOM Housing Loans B- Darati Housing Loan subsidized by BDL* For professors willing to buy their primary house In LBP: Loan Amount: No ceiling No Down Payment Interest rate: 40% LBP Treasury Bills for one year + 3% (currently 4.92%) Period: Up to 25 years In USD: Loan Amount: No ceiling No Down Payment Interest rate: Cost of funds + 2% (currently 4.88%) Period: Up to 25 years * Offer valid till the end of December

8 IV. BLOM Housing Loans C- Darati Under Construction First bank in Lebanon to offer such a product For professors willing to buy their primary house while it is still being built In LBP: Loan Amount: No ceiling Down Payment: 10% for residents in Lebanon Interest rate: 40% LBP Treasury Bills for one year + 3% (currently 4.92%) Period: Up to 20 years In USD: Loan Amount: No ceiling Down Payment: 10% for residents in Lebanon Interest rate: Cost of funds + 2% (currently 4.88%) Period: Up to 20 years 7

9 IV. BLOM Housing Loans D - Darati For professors willing to buy an additional home, villa, chalet In LBP: Loan Amount: No ceiling Down Payment: case by case Interest rate: Interest on Treasury Bills for 1 year + 3% with a minimum of 10% Period: Up to 20 years In USD: Loan Amount: No ceiling Down Payment: case by case Interest rate: 6.75% during the first year. LIBOR + 4% with minimum of 8% during the remaining years. Period: Up to 20 years 8

10 V. BLOM Retail Products & Services BLOM Bank offers you three new current accounts, each bundled with a combination of free benefits... Account Plus, BLOM Wedding List Account, Salary Domiciliation Enjoy the liquidity and benefit from our bouquet of loans... Sayarati Car Loan, Kardi Personal Loan, Kafalat Loan BLOM offers a wide-array of payment cards to meet your every need... Platinum, Gold, Commercial, Classic, Electron BLOM Bank offers you a collection of Investment products to help you manage your finances in a better, safer and more profitable way BLOM Cedars Balanced Fund, BLOM Petra, BLOM Pyramids, Waladi Plus, Damanati Plus 9

11 VI. BLOM Credentials BLOM Bank is one of the leading banks in the Middle East, with a significant and growing regional presence. Our innovative products and outstanding service have proved to deliver Peace Of Mind to all our customers worldwide. A Real Estate Unit was created in the Investment Banking division to provide the group s investors with the opportunity of getting exposed to the real estate market inside and outside Lebanon. The Real Estate team is made up of civil engineers and financial experts in the real estate field. The team s real estate projects are carefully selected, taking into account market trends, and offer the highest return with minimal risk to investors. The unit s added value stems from an extensive experience in prime real estate projects management, and tailor-made financing solutions capability. a 10

12 Contact Person Charbel Jamous Tel: Mob:

13 This presentation has been prepared by BLOM BANK for informational purposes only. Although the information in this presentation has been obtained from sources which BLOM BANK believes to be reliable, we do not represent or warrant its accuracy, and such information may be incomplete or condensed. This report does not constitute a prospectus and is not intended to provide the sole basis for any evaluation of the projects discussed herein. All estimates and opinions included in this presentation constitute our judgement as of the date of the presentation and may be subject to change without notice. Changes to assumptions may have a material impact on any recommendations made herein. BLOM BANK or its affiliates may, from time to time, have a position or make a market in the securities mentioned in this report, may solicit, perform or have performed investment banking, underwriting or other services (including acting as adviser, manager or lender) for any company, institution or person referred to in this presentation and may, to the extent permitted by law, have used the information herein contained, or the research or analysis upon which it is based, before its publication. BLOM BANK will not be responsible for the consequences of reliance upon any opinion or statement contained herein or for any omission. This report is confidential and is being submitted to selected recipients only. It may not be reproduced (in whole or in part) to any other person without the prior written permission of BLOM BANK. Any U.S. person receiving this presentation and wishing to effect a transaction in any security discussed herein, must do so through a U.S. registered broker dealer BLOM BANK. All rights reserved. 11

Comparison of House Loan Offers to AUB Faculty and Staff

Comparison of House Loan Offers to AUB Faculty and Staff General Overview 1. BLOM Bank BLOM bank offers four different loans that satisfy different purposes. The first category of loans is offered in LBP