Amãna Bank gets capital boost from ICD
View(s):IB Growth Fund (Labuan) LLP, a subsidiary of the Islamic Corporation for the Development of the Private Sector (ICD), is to increase its stake to nearly 30 per cent in Amana Bank through the bank’s forthcoming rights issue.
In a media release, Amana said it had received confirmation from this foreign partner of such intention.
Amãna Bank Chairman Osman Kassim exchanging agreements with ICD CEO Khaled Al Aboodi at the recent 42nd Annual Meeting of IDB Governors in Jeddah.
ICD, a multilateral development financial institution and part of the Islamic Development Bank (IDB) Group, is currently a strategic shareholder of the bank with a 9.62 per cent stake.
Sri Lanka’s Central Bank has granted approval for the said parties in conjunction to hold up to a maximum of 29.99 per cent of voting shares of the bank, the release added.
Commenting on this strategic investment, Amãna Bank’s Chairman Osman Kassim said, “Amãna Bank is truly honoured to have the confidence of ICD, resulting in this strategic shareholding. This partnership will be a pillar of strength in our journey towards promoting the values of Islamic Banking”.”
According to the rights issue announcement, the bank, subject to approval, plans to issue 1.25 billion new shares at Rs. 3.80 per share in a ratio of one new ordinary share for every one ordinary share held. With the participation of ICD along with other local and foreign investors, full subscription to the issue will result in the bank’s stated capital surpassing Rs. 10 billion, thereby crossing the regulatory capital requirement set for 2018 well in advance.