Abu Dhabi: Abu Dhabi Islamic Bank (ADIB), a leading financial institution, will hold a General Assembly for shareholders on August 19 2018 to vote on a proposal by the bank’s Board of Directors to raise capital through a AED 1 billion rights issue, which would support the bank’s continued growth and its objectives in achieving its 2020 vision while meeting regulatory requirements.
The General Assembly will also vote on a board proposal to issue a USD 750 million (AED 2.75 billion) perpetual Tier 1 sukuk, and the repayment of its USD 1 billion sukuk that was successfully issued in 2012 as the world’s first Sharia’a- compliant hybrid Tier 1 sukuk.
The proposed rights issue would increase ADIB’s issued capital from AED 3,168,000,000 to AED 3,632,000,000 through the issuance of 464,000,000 new shares, issued at AED 2.16 per share (nominal value of AED 1 per share as well as an issuance premium of AED 1.16 per share). This represents a 45 percent discount to the share price as of July 24, 2018.
Mr. Khamis Buharoon, ADIB Vice Chairman and acting CEO, said: “ADIB has experienced a period of strong expansion and we expect this growth trajectory to continue. The Board believes that the decision to raise capital through rights issue will position us well to take advantage of the UAE’s economic development and ensure that we continue to deliver a compelling offering to customers, while also raising our capital ratios. This approach, which will underpin the financial strength of the bank, will create long-term value for our shareholders.”
The bank will continue to focus on expanding its retail business, providing market-leading digital banking services, while capturing opportunities across corporate, transaction and correspondent banking. ADIB reported a 3 percent increase in net profit for the first half of 2018, which reached AED 1.16 billion. Group revenues continued to grow, while the bank maintained a disciplined approach to cost and risk management. The bank paid a dividend of 28.87 percent of share capital for 2017, representing 39.76 percent of full year net profits.
The General Assembly will take place at the Abu Dhabi Chamber of Commerce on August 19, 2018. Should it fail to achieve a quorum of 50 percent of shares owned, a further meeting will be scheduled at the same venue on August 26, 2018. ADIB will set the timetable for the rights issue, including the ex-rights date and subscription period and Tier 1 sukuk issuance following shareholder approval, UAE central bank and other regulators.
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About ADIB
ADIB is a leading bank in the UAE with more than AED 122 billion in assets. Its 1 million customers benefit from the third largest distribution network in the UAE with 82 branches and more than 710 ATMs. The bank also offers world-class online, mobile and phone banking services, providing clients with seamless digital access to their accounts 24 hours a day. ADIB provides retail, corporate, business, private banking and wealth management solutions. The bank was established in 1997 and its shares are traded on the Abu Dhabi Securities Exchange (ADX).
In the UAE, the Bank has more than 2,000 employees and remains one of the leading banks in the recruitment, development and promotion of local talent in all the markets in which it operates. The bank has one of the highest Emiratisation ratios with more than 37 percent of the bank’s workforce being UAE Nationals.
ADIB has presence in six strategic markets: Egypt, where it has 70 branches, the Kingdom of Saudi Arabia, the United Kingdom, Sudan, Iraq and Qatar.
Named “Best Bank in the UAE” by The Financial Times’ The Banker publication, ADIB has a rich track record of innovation, including introducing the award-winning Ghina savings account, award-winning co-branded cards with Etihad and Etisalat and a wide range of financing products.
For media information, please visit www.adib.ae or contact:
ADIB
Radwa Shehab
Senior Corporate Communication Manager
Direct: +971 2 6910169
Brunswick Group
Mouaffak Haijar
Account Director
Direct: +971 2 234 4600
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