Sunday 26, August 2018 by Kudakwashe

ADIB’s shareholders approve proposed rights issue

 

The proposed rights issue will increase Abu Dhabi Islamic Bank (ADIB) issued capital from AED 3.1 billion to AED 3.6 billion through the issuance of 464 billion new shares.

ADIB’s shareholders have approved a proposal by the bank’s Board of Directors to raise capital through a AED 1 billion rights issue.

The capital plan seeks to support the bank’s continued growth and its objectives in achieving its strategy while meeting regulatory requirements. In a statement, ADIB said that the general assembly approved the board’s proposal to issue a $750 million (AED 2.75 billion) perpetual tier one Sukuk as well as the repayment of its $1 billion Sukuk that was successfully issued in 2012 as the world’s first Shari'ah compliant hybrid tier 1 Sukuk.

ADIB reported a three per cent increase in net profit in H1 2018 amounting to AED 1.16 billion. The lender will announce the timetable for the rights issue, including the ex-rights date, rights trading period as well as subscription period after the approval of the Central Bank of the UAE (CBUAE) and Securities and Commodities Authority (SCA).

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