Emirates Islamic launches 1.5 bln dirham rights issue

Emirates Islamic launches 1.5 bln dirham rights issue
Published: 6 December 2016 - 11:40 a.m.
By: Reuters

Emirates Islamic Bank, the shariah-compliant arm of Dubai's largest lender, launched its 1.5 billion dirham ($408 million) rights issue on Tuesday.

Shareholders, who hold shares in the bank at the close of business on Tuesday, will be eligible to the subscription which begins on December 14 and ends on December 28, the Dubai-based lender owned by Emirates NBD said in a bourse statement.

The statement said allocation of the new shares will be made on December 29.

The bank's chief executive Jamal Bin Ghalaita told Reuters on October 10 the lender planned to complete its rights issue by early December.

The rights issue will increase the bank's paid up share capital from 3.93 billion dirhams to 5.43 billion dirhams, it said in a statement. Each new share will be priced at 1 dirham.

Shareholders are eligible to buy one share for every 2.63 shares held on the subscription date.

Emirates NBD is the book runner for the transaction.

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