Emirates Islamic Bank is reportedly planning to raise AED1.5 billion ($408 million) from a rights issue to boost capital.
The offer, approved by its board on Wednesday, will raise the bank’s equity capital 38 percent to AED5.43 billion, Bloomberg reported, citing to a statement on the Dubai bourse.
Each rights share will be priced at 1 dirham and the bank, the shariah-compliant unit of Emirates NBD, will call an extraordinary shareholders meeting to seek approval for the plan, Bloomberg added.
In August, it was reported that Emirates Islamic laid off more than 100 people as part of cost cutting to adjust to a cooler economy. The bank employs around 2,000 people.
Emirates Islamic has also raised money recently to fund lending. It completed a $750 million Islamic bond in May and raised a further $250 million from a tap of the issue in August.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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.