Dubai Islamic Bank says Dh3.2bn rights issue three times oversubscribed

Will increase the share capital of the bank from Dh3.95bn to Dh4.94bn.

Powered by automated translation

Dubai Islamic Bank, the biggest Sharia-compliant lender in the emirate, said its Dh3.2 billion capital increase was nearly three times oversubscribed.

It said the rights issue will increase the share capital of the bank to Dh4.94bn from Dh3.95bn through the issuance of 988.4 million new shares.

The final allocation of shares is expected to take place today.

The bank did not indicate precisely what it would use the money for, although some of it will be used to satisfy new banking regulations for lenders to have more cash at hand.

“The timing of this rights ­issuance is critical as it will enable us to continue our drive to advance incremental business through deeper penetration of existing and new wholesale ­segments, as the bank stays on its course to gain greater market share within UAE,” said Adnan Chilwan, DIB’s group chief ­executive.

“The increased capital via this issuance will allow us to implement our evolutionary agenda and plans while ensuring we continue to meet the regulatory requirements under the capital and liquidity guidelines laid down by the UAE Central Bank.”

Shares of DIB fell by 2 per cent yesterday amid a broader sell off triggered by Brexit.

mkassem@thenational.ae

Follow The National's Business section on Twitter