Loading ...Bank of Sharjah announces successful conversion of 500 Million BOS Bonds |
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Sharjah, UAE, March 27, 2008: Bank of SharjahBank of Sharjah
has thanked the bondholders, who have on 17 March 2008 converted their bonds into shares, for their trust and confidence.395 bondholders have converted 487,472,086 bonds representing 97.49% of the total. The capital of the Bank after the said conversion stands at AED 1,737,472,086 short by AED 12,527,914, representing the value of the bonds not converted by 35 bondholders who adopted the strategy of not taking advantage of the favorable market conversion rates.
With this successful conversion, the Bank's Total Equity reaches the threshold of AED 3.5 billion confirming the outstanding position of Bank of SharjahBank of Sharjah among the league of the best performing financial institutions of the UAE.
The new equity will further support the Bank's expansion plans and help its organic growth without further recourse to capital.
Ahmed Abdulla Al Noman Chairman of the board has stated that Bank of SharjahBank of Sharjah since its inception has delivered extremely high cash returns to its shareholders.
Every cash capital contribution inclusive of premiums has been returned to shareholders within a very short span of 3 years.
Within the budgeted figures of 2008 and 2009 we estimate this high yield to continue and outperform the past, added Varouj Nerguizian, General Manager.
The book value of the share after the successful conversion has increased to AED 2.0 and in line with the current UAE market averages, of Market Value to Book Value, the share price should appreciate positively based on this new book value. This is due to the unique mechanism of the convertibility of Bank of SharjahBank of Sharjah bonds, a first in the UAE, as every share of AED 1.0 is matched by an AED 2.0 premium to reserves.
As at 31 December 2007, the total number of shareholders stood at 833 of which 19 held 75% of the capital,275 held 24% and 558 a mere 1%.
An Extraordinary General Assembly shall be convened shortly to confirm and increase the new capital to the round figure of 1750 Millions by issuing 12,527,914 additional shares as per customary procedures.
Financial highlights: 2007 2006 Growth AED. Millions AED. Millions + Total assets 10,789 8,353 29% Loans and advances 5,312 3,756 41% Deposits 6,337 4,845 31% Equity 2,298 2,096 10% Net profit 404 ===== 320 ===== 26% ===== Earnings per share 0.32 0.27 19% Declared dividends - (25% in 2007, 20% 2006) 312,5 ===== 250 ===== 25% ====== Dividends payout ratio 77% 78% Capital adequacy 25.3% 30.8% Fitch rating A- A- Book Value of the share (after dividend payment) 1.59 1.48
Book Value of the share after Bond conversion 2.00
-Ends-
MEDIA CONTACTS:
Edward D'Mello
Group Account Director
Polaris Public Relations
Tel: 04-3415555; 04-3415588
Email: e.dmello@polaris-me.com
Aida Armali
Assistant Manager
Bank of Sharjah
Tel: 06-5694411;
Fax: 06-5694422
Email: aida.armali@bankofsharjah.com
© Press Release 2008 from Polaris PR
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