Ithmaar to offer rights issue, launch Mandatory Convertible Sukuk |
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MANAMA, BAHRAIN 17/10/2009: Ithmaar BankIthmaar Bank
Chairman Khalid Abdulla-Janahi announced today (ed note: 17/10/09) that the Bank intends, as part of its capital-raising exercise, to offer a rights issue and launch a five-year Mandatory Convertible Sukuk, the Islamic equivalent of mandatory convertible bond issue. J.P. Morgan is assisting Ithmaar BankIthmaar Bank
with its capital-raising plans for the Mandatory Convertible Sukuk.Janahi also announced that an agreement in principle had been reached with Global Emerging Markets of New York (GEM), whereby GEM would commit to provide an equity line of credit amounting up to US$125 million which the Bank will have the option to draw down over a period of five years at prevailing average volume and market prices, resulting in issuance of new ordinary shares.
"We have received the Central Bank of BahrainCentral Bank of Bahrain
's No Objection in respect of the Mandatory Convertible Sukuk," said Janahi. "As for the rights issue and equity line of credit, they will be subject to the approval of the regulatory authorities in the Kingdom of Bahrain. The benchmark size of the capital raising plans is between USD400 million and USD500 million. All the above will further strengthen our capital base and liquidity position," he said. "This will, together with the recently announced reorganisation plan, put us in a privileged position to best capitalise on the opportunities that are now being created," said Janahi. "The plans are still subject to shareholder and regulatory approval and formal documentation," he said.
On Wednesday (ed note 14/10/09), Ithmaar BankIthmaar Bank
announced plans for a comprehensive reorganisation of the Bank with its wholly-owned subsidiary, Shamil BankShamil Bank. The plans, which will see Ithmaar BankIthmaar Bank emerging as a premier Islamic retail bank, involve both banks pooling their resources to create a single, more efficient and significantly stronger retail-focused Islamic bank, under the IthmaarIthmaar brand. This business model, to be adopted by the Bank, is part of its new Strategy. The reorganisation plan will further improve liquidity, lower the Bank's risk profile and enhance shareholder value by amplifying existing synergies. The reorganisation plan was announced following a meeting of the IthmaarIthmaar Board of Directors and the Central Bank of BahrainCentral Bank of Bahrain's No Objection (to the proposed reorganisation). The proposed reorganisation is still subject to shareholder and other regulatory approvals.- Ends -
About IthmaarIthmaar
BankIthmaar BankIthmaar Bank
B.S.C.(stock code "ITHMR") is licensed by the Central Bank of BahrainCentral Bank of Bahrain and listed on the Bahrain Stock Exchange and the Kuwait Stock Exchange. It has a paid-up capital of US$598 million, total equity of US$1.1 billion and is a full service investment bank with its direct business covering the Middle East and North Africa (MENA) region, as well as South Asia, Asia-Pacific and Europe. Besides holding significant investments in the banking and financial service sectors in different markets, the main direct activities of the Bank include underwriting (equity and other financings), private equity (structuring, participation and portfolio management), Islamic financing and advisory services covering project financing, investments, capital markets and mergers & acquisitions.
Ithmaar BankIthmaar Bank
's flagship subsidiaries and associates include Shamil BankShamil Bank of Bahrain (headquartered in Bahrain), IthmaarIthmaar Development Company Limited, Faysal Bank Limited (Pakistan), Faisal Private Bank (Switzerland), Sakana Holistic Housing Solutions, Solidarity (an Islamic insurance company), BBK B.S.C., Bahrain based First Leasing Bank, and Ithraa Capital (Saudi Arabia). For more information on Ithmaar BankIthmaar Bank
, please visit the Bank's website at www.ithmaarbank.comAbout Shamil BankShamil Bank
Shamil BankShamil Bank
is a Bahrain-based Islamic retail bank licensed and regulated by the Central Bank ofBahrain, with commercial and investment banking activities. It has grown steadily to become one ofBahrain's leading financial institutions.
Shamil BankShamil Bank
provides a diverse range of products and services that cater to the financing and investment needs of individuals and institutions. Conducting its business in compliance with the principles of Sharia'a, it operates a network of local branches and maintains a presence in overseas markets through its subsidiaries, associated and affiliated companies. Shamil BankShamil Bank
is a wholly owned subsidiary of Ithmaar BankIthmaar Bank B.S.C., a full service investment bank. About IthmaarIthmaar
banking group The IthmaarIthmaar
banking group consists of Ithmaar BankIthmaar Bank, Shamil BankShamil Bank, Solidarity (an Islamic insurance company), Faisal Private Bank (Switzerland), Faysal Bank Limited (Pakistan), First Leasing Bank and IthmaarIthmaar Development Company. The group's services, including investment, private, retail, and commercial banking, private equity, mergers & acquisition advice, takaful, leasing, and real estate development, form a 360 degrees value chain that embraces the entire spectrum of banking and financial services.© Press Release 2009
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