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Abu Dhabi Islamic Bank plans shares issue to help fund its expansion

 

Photo Credit The National)

Photo Credit The National)

Abu Dhabi: (IINA) – Abu Dhabi Islamic Bank (ADIB) plans to begin a rights issue on August 23 to help fund its expansion, the biggest Sharia-compliant lender in the UAE noted this week, The National business news reported.

ADIB, which got shareholder approval to increase capital, will sell 168 million shares at Dh3 per share to existing shareholders as it aims to raise Dh504m, it said.

“ADIB expects more opportunities for expansion in the coming years, and the rights issue forms part of a capital growth plan to support them,” the bank said.

Each shareholder will have the right to subscribe to 56 new shares for every 1,000 shares held as of August 13.

The subscription period ends on September 10.

ADIB on Wednesday posted a 10.5 per cent increase in second-quarter net profit to Dh502.6m, boosted by a decline in impairments and an increase in fee and commission earnings.

The lender is also seeking to take on more Islamic debt by increasing its Tier 1 capital to US$3 billion from the existing approved limit of $2bn. That comes after a period of rapid expansion for the bank, which also has operations in Saudi Arabia, Sudan, Qatar, Iraq and the United Kingdom.

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