The planned rights issue of Union National Bank (UNB) for 250 million shares opened yesterday, but a further increase in capital may not take place immediately, the bank's chief said.
Also, the bank completed last month the process of raising money through the euro medium term notes.
"The rights issue for 250 million shares has opened and will close on September 7. Shareholders have to apply now and allotment will be made as per the management's decision," Mohammad Nasr Abdeen, chief executive, UNB, told Gulf News.
The rights issue will take the bank's capital from Dh1 billion to Dh1.25 billion.
The rights issue price is set at Dh8 per share (Dh7 as premium plus Dh1 face value of the share).
UNB announced in July that it plans to raise its capital to Dh1.5 billion in two stages, first through a rights issue and later raise another Dh250 million. "This increase is not required at present. But if we need to raise the capital further we will go back to the extraordinary general meeting to get approval."
Abdeen said the bank raised the amount required as part of the euro medium term notes. "This was completed last month. We raised what we needed," he said without specifying the actual amount raised.
The bank issued a floating rate euro medium term notes to support the growth in balance sheet and profitability levels
and expand the bank's presence in the international market.
UNB earned a net profit of Dh522.92 million during first half this year, up 131 per cent over the same period last year.
Gulf News
