Doha Bank said on Monday shareholders had approved a plan to raise its capital by up to 20 percent in order to sell a stake to the Gulf state's sovereign wealth fund, the Qatar Investment Authority (QIA). The shares would be issued at their closing price on Oct. 12, Doha Bank said in a statement on the bourse website. The shares closed at 42.7 riyals ($11.72) that day. Doha Bank said the capital increase would take place in two stages. In October, the QIA launched a $5.3 billion plan to buy shares of listed banks to shore up investor confidence as regional markets slump during a global economic downturn. Banks including Commercial Bank of Qatar and Qatar Islamic Bank have announced similar plans to sell stakes to the QIA, which wants to ensure that banks in the Gulf state are able to keep project financing on track. (Reuters)
Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.