London, 4 April 2008 - Baker & McKenzie has advised the Central Bank of Libya on the sale by Libya's Social Economic Development Fund ("SEDF") of a 19% stake in Wahda Bank to Arab Bank plc of Jordan for €210million. The deal gives Arab Bank plc the option to increase its holding to 51% within a three to five year period.

The Central Bank of Libya is the country's monetary authority and banking sector regulator. The sale by SEDF of part of its investment in Wahda Bank to a strategic foreign partner is the second bank privatisation in Libya, following on the sale of Sahara Bank in July 2007 on which Baker & McKenzie also acted.  The sale of Wahda Bank is part of an ambitious privatisation and modernisation programme of the Libyan banking industry being championed by the Central Bank of Libya.  The disposal was achieved through a competitive international auction process and was signed and completed inside six months, believed to be a record for the MENA region.

Arab Bank plc will immediately take over operational control of Wahda Bank and has majority board control, evidencing Libya's determination to create a modern and well functioning retail banking network modelled on the existing branch network operated by Arab Bank.

Commenting on the sale, Bernd Ratzke, Corporate Partner at Baker & McKenzie, said: ''Having kicked off the modernisation process with the privatisation of Sahara Bank, we were well placed to extend the programme to Wahda Bank.  There was strong competitive interest throughout the process and, now with two foreign-managed retail banks operating in Libya, there is likely to be competition in the Libyan market which will encourage both BNP Paribas and Arab Bank to deliver the technical enhancements to which they committed with their respective offers.  As previously, the Central Bank of Libya made its determination to see the process through very clear and we are pleased to have worked with an excellent client and co-adviser team in delivering the transaction to timetable.''

The Baker & McKenzie team was led in London by Bernd Ratzke, assisted by associate Richard Essex. Partner Mohamed Ghannam and associate Hoda Etman of Baker & McKenzie  Cairo also advised.  Other advisers to the Central Bank of Libya and SEDF on this transaction included Rothschild & Cie, McKinsey & Company and KPMG.  Zahaf & Partners advised on Libyan law issues.