Banque Saudi Fransi Proposes 25% Capital Hike To Boost Growth Plans

Wednesday, Jan 04, 2012

(This story was originally published Tuesday.)

DUBAI (Zawya Dow Jones)--Banque Saudi Fransi (1050.SA), part-owned by France's Credit Agricole, said its board of directors has proposed to increase its capital by 25% via a bonus share issue to help bolster the lender's growth plans in the kingdom.

The bank plans to issue one bonus share for every four held by shareholders to increase its capital to 9.04 billion Saudi riyals ($2.41 billion) from SAR7.23 billion, BSF said in a statement posted on the Saudi bourse website late Monday.

The capital increase, still pending regulatory and shareholder approval, will be funded through a transfer from the general reserve, the bank added.

Shareholders will meet in the first quarter of 2012 to vote on the capital increase. The exact date of the meeting will be announced in due course, BSF said.

BSF shares closed flat Monday at SAR41.80 on the Tadawul market.

-By Nikhil Lohade, Dow Jones Newswires, +9714 446 1694, nikhil.lohade@dowjones.com

(END) Dow Jones Newswires

04-01-12 0349GMT