Dubai-Mubasher: Dubai Islamic Bank's (DIB) capital increase is “credit positive”, ratings agency Moody's said.
DIB managed to raise AED 3.2 billion ($860 million) from its rights issue, thus increasing its capital to AED 4.9 billion from AED 3.9 billion as of March 2016.
The rights issue will improve the bank’s liquidity, in addition to replenishing reserves and enhancing loss-absorption buffers.
“DIB's consolidated tangible common equity to risk-weighed-assets ratio will improve to around 12.3% from 9.8 per cent as of March 2016," Moody's estimated.
