DUBAI Oct 6 Emirates Islamic Bank, the
shariah-compliant arm of Dubai's largest lender, said on
Thursday it plans to raise 1.5 billion dirhams ($408 million) in
a rights issue to increase its capital.
It is the latest Gulf bank to seek to raise its capital
ratios, either through a rights issue or the sale of
capital-boosting bonds or sukuk, to replenish reserves after a
period of strong lending growth and to meet new global banking
The rights issue will increase the bank's paid up share
capital from 3.93 billion dirhams to 5.43 billion dirhams, it
said in a statement. Each new share will be priced at 1 dirham.
Rights issues in the Gulf are traditionally sold at
substantial discounts to attract local subscribers.
Owned by Emirates NBD, the bank said it has board
approval and will now call an extraordinary general meeting at a
later date to approve the move.
In June, Dubai Islamic Bank completed a 3.2 billion dirham
rights issue aimed at bolstering the capital base of the United
Arab Emirates' largest sharia-compliant lender.
($1 = 3.6726 UAE dirham)
(Reporting by Tom Arnold; Editing by Alexander Smith)