Monday 13, March 2017 by Georgina Enzer

Sharjah Islamic Bank plans convertible Sukuk issue equivalent to 10 per cent of capital

Sharjah Islamic Bank (SIB) is planning to issue convertible Sukuk, equivalent to 10 per cent of the lender’s capital, according to the Bank.

Funds raised through the sale will be used by Islamic endowments selected by the government of Sharjah.

The bank has also authorised a capital increase to around AED 2.66 billion, as well as approving a bonus share dividend of 10 per cent of the nominal value of the shares, following the bank’s announcement of a net profit of AED 463 million in 2016.

"The SIB’s positive financial results in 2016 fit perfectly with our ambition and aspirations for the development of the UAE economy, which grew substantially last year, and is expected to continue this trend in 2017," said Abdul Rahman Al Owais, Chairman of Sharjah Islamic Bank.

Al Owais hailed His H.H. Dr. Sheikh Sultan bin Mohammed Al Qasimi, Supreme Council Member and Ruler of Sharjah, for his continued support of the banking sector, and H.H. Sheikh Sultan bin Mohammed bin Sultan Al Qasimi, Crown Prince and Deputy Ruler of Sharjah, for supporting the bank.

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