ADIB shareholders approve $272mln rights issue

Bank will also issue a 2.75billion UAE dirham sukuk, with existing Islamic bond retired

ADIB said it will continue focusing on growing its retail business “while capturing opportunities across corporate, transaction and correspondent banking”.

Vice-chairman and acting CEO Khamis Buharoon said in the statement that by “voting in favour of ADIB’s proposed capital plans, our shareholders have clearly understood and endorsed the bank’s growth strategy”. A timetable for the offer will be announced soon, it added.

In July, ADIB reported a second-quarter profit of 572.7 million dirhams, up 3.8 percent year-on-year. Revenue fell 3.1 percent to 1.36 billion dirhams.

ADIB’s larger domestic rival, Dubai Islamic Bank, undertook its own 5.1 billion dirham rights issue in May, which was conducted to boost the bank’s liquidity.

An infographic produced by Salaam Gateway shows that by the end of June, Islamic banks had a 20.6 percent share of total assets held by banks in the United Arab Emirates.

(Writing by Michael Fahy; Editing by Matt Smith)

© ZAWYA 2018

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