Saudi funds to control near 30% stake in Amana Bank

Monday, 22 May 2017 00:46 - - {{hitsCtrl.values.hits}}

Saudi Arabian funds are expected to own nearly 30% stake in Amana Bank, the latter announced on Friday.

Amana Bank said that IB Growth Fund (Labuan) LLP (IBGF), a subsidiary of the Islamic Corporation for the Development of the private sector (ICD) and whose ultimate parent is Islamic Development Bank (IDB), a current shareholder, has agreed to participate in the forthcoming Rights Issue by subscribing to the Rights within the permitted regulatory limits.

In this regard the Central Bank has granted approval for these parties in conjunction to hold up to a maximum of 29.99% of the voting shares of the bank.

This decision was consequent to an investment agreement signed between the parties last week at a meeting held in Jeddah, Saudi Arabia. Islamic Development Bank at present holds 9.62% stake and is the fourth-largest shareholder of Amana Bank after Bank Islam Malaysia (14.44%0, AB Bank (14.44%) and Akbar Brothers (9.98%) whilst Expolanka Holdings owns 7.72%.

Amana Bank earlier this month announced a one for one Rights Issue at Rs. 3.80 to raise Rs. 4.75 billion.

The move was to raise the Core Capital of the bank to Rs. 7.5 billion by 30 June 2017 as required by the Central Bank. It plans to increase the Core Capital to Rs. 10 billion to be in line with CB requirements by 1 January 2018.

The Stated Capital of Amana Bank at present is Rs. 5.86 billion.