Abu Dhabi Islamic Bank gets nod for $270m rights issue

Shareholders of Abu Dhabi Islamic Bank (ADIB) have approved proposal for a rights issue of AED1 billion ($270 million) by offering 464 million new shares.

Shareholders also approved the issuance of a $750 million sukuk and the repayment of its $1 billion sukuk issued in 2012.

The proposals were passed by the requisite majority at the recent general assembly for shareholders, a statement said, adding that the capital plan has been developed to support the bank’s continued growth.

Khamis Buharoon, ADIB vice chairman and acting CEO, said: “In voting in favour of ADIB’s proposed capital plans, our shareholders have clearly understood and endorsed the bank’s growth strategy. The bank has performed strongly in recent years, demonstrating a consistent and sustainable track record of profitability and operational strength.

"Our focus has always been on maintaining a solid capital base, which can provide stability and enable the bank to expand and grow from a position of strength.”

The rights issue will increase ADIB’s share capital to AED3.63 billion through the issuance of 464,000,000 new shares at AED2.16 per share.

Buharoon said the bank will continue to focus on expanding its retail business, providing market-leading digital banking services, while capturing opportunities across corporate, transaction and correspondent banking.

ADIB reported a 3 percent increase in net profit for the first half of 2018, which reached AED 1.16 billion.

ADIB said it will shortly announce the timetable for the rights issue following the approval of the Central Bank of the UAE and Securities and Commodities Authority.

Arabian Business.com Contribution Time: 26-Aug-2018 05:15 (GMT)
Arabian Business.com Last Update Time: 26-Aug-2018 05:15 (GMT)