Abu Dhabi – Mubasher: Abu Dhabi Islamic Bank's (ADIB) shareholders on Sunday approved an AED 1 billion rights issue to raise the bank's paid and issue share capital through a tradeable rights issue of 464 million new shares to its shareholders.
Shareholders also nodded to the issuance of perpetual Tier 1 sukuk worth $750 million (AED 2.75 billion) as well as the repayment of $1 billion (AED 3.75 billion) in sukuk issued in 2012, ADIB said.
"The capital plan has been developed to support the bank’s continued growth and its objectives in achieving its strategy while meeting regulatory requirements," ADIB revealed in a statement.
The rights issue will bolster the Abu Dhabi-based Islamic bank's issued and subscribed share capital to AED 3.632 billion from AED 3.168 billion currently.
New shares will be issued at AED 2.16 per share, including AED 1 per share in nominal value and an issuance premium of AED 1.16 per share. This represents a 45% discount to the market share price as of 25 July 2018, the bank said.
ADIB "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,” commented ADIB vice chairman and acting CEO Khamis Buharoon.
