HSBC Holdings and Standard Chartered are among the international banks that have applied to set up units in Libya, the North African country's central bank governor said yesterday.
The central bank in February said it planned to grant two licences for foreign institutions to set up units in Libya as the holder of Africa's largest crude oil reserves moves to cut back the government's role in the economy.
"Many banks have applied to the central bank, chief among them are HSBC and Standard Chartered," Farhat Bengdara told an investment conference in Tripoli. "The first so-called greenfield licence for a foreign bank will be awarded in July."
The foreign banks will control 49 per cent of their Libyan subsidiaries and have full management control, the central bank said in February. The remaining 51 per cent will be owned by domestic investors.
Arab banks have also applied for the licences, the governor said yesterday without providing additional details. UK-based bank Standard Chartered plans to raise up to $750 million (Dh2.75 billion) with an Indian share listing in the next three months to beef up its profile in what may soon become its biggest market.
Chief Executive Peter Sands said the Asia-focused bank would raise at least $500m and was unlikely to raise more than $750m in what would be the first offering of Indian Depositary Receipts in Asia's third-largest economy. The amount will depend on investor appetite and will take place in the first half.
"The IDR listing is really all about brand awareness and business development in a market that's incredibly important to us, rather than specifically for raising capital," Sands told reporters on a conference call.
The London-based bank, which has been in India for 152 years and is the largest international bank there with 94 branches and 17,000 staff, is also listed in Hong Kong and is expanding across Asia after weathering the financial crisis better than most rivals.
Standard Chartered also wants to list in Shanghai, but that is dependent on regulators approving plans. Its bigger rival HSBC wants to list in Shanghai this year, but that is also dependent on getting regulatory approvals.
Standard Chartered's profit in India rose 19 per cent to $1.06bn last year, contributing 21 per cent of group earnings, ranking India fractionally behind Hong Kong as the biggest profit contributor and putting it on track to become the top market this year. "Given the strength of the economy and of leading corporates in India, I think you're going to see further development of capital markets," Sands said.