Shareholders back plan to help company achieve expansion both at home and abroad
Shareholders in Kuwait Finance House (KFH), the Gulf state's largest Islamic lender, have agreed to a 20 percent capital hike, the company said on Monday.
KFH had said last year that the bank plans to increase its capital to boost capital ratios and fund expansion both at home and abroad, as part of the bank's five-year strategic plan.
New shares will be issued at 100 fils ($0.35) per share plus a premium of 400 fils, the bank said in a bourse filing. The Annual General Meeting was held late on Sunday.
KFH shares are now trading at 780 fils, down 1.27 percent on the Kuwait bourse.
A capital increase could boost KFH's paid-up capital to 348.5 million dinars ($1.24 billion) from 290.4 million dinars, Al Watan newspaper reported in November.
Kuwaiti banks have suffered since the global financial crisis because of exposures to the local real estate and stock markets whose values have dropped significantly, as well as to investment firms which borrowed heavily in the boom years to finance activity in the two areas.