Emirates Islamic said to plan rights issue to raise $408m

Islamic unit of Emirates NBD has reportedly had offer approved by board, will go to shareholders
Emirates Islamic said to plan rights issue to raise $408m
By Staff writer
Thu 06 Oct 2016 02:25 PM

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.

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