Abu Dhabi Islamic Bank PJSC : ADIB shareholders approve capital raising proposals

ADIB shareholders approve capital raising proposals

Abu Dhabi, [28 June] 2015:

The shareholders of Abu Dhabi Islamic Bank PJSC, Abu Dhabi, United Arab Emirates (ADIB) have approved proposals to raise AED 504 million of share capital through a rights issue of 168 million new shares, and to increase the bank's authorisation for issuing sharia-compliant tier 1 capital instruments to USD 3 billion from the current limit of USD 2 billion.

The proposals were passed by majority at an extraordinary general meeting (EGM) of shareholders held on [June 28, 2015].

"By agreeing to increase our share capital, and to increase our tier 1 sukuk issuance capacity, ADIB shareholders have once again endorsed the bank's growth strategy," said Tirad Mahmoud, ADIB's Group Chief Executive Officer.

"We have experienced strong and prudent expansion in recent years and we continue to build our market-leading retail, private and wholesale banking businesses. As a top tier financial institution, ADIB is committed to maintaining a solid capital base and the bank aims to continue to deliver the superior returns that our shareholders and capital market investors have come to expect."

Each registered shareholder will receive fifty six (56) rights for every one thousand (1,000) ADIB shares held at the time of the rights issue. Each right grants its holder the eligibility to subscribe to one new share at an issue price of AED 3 per share, reflecting the nominal value of AED 1 per share, and a share premium of AED 2 per share.

For the first time in the UAE, rights issued by a bank will be traded on the Abu Dhabi Securities Exchange through approved brokers.

ADIB plans to publish the schedule for the rights issue in the coming weeks, and will launch a communication programme to inform shareholders on how to exercise their rights to subscribe to shares or trade the rights.

The increase of ADIB's authorisation for the issuance of sharia-compliant tier 1 capital instruments paves the way for a further perpetual sukuk issuance by ADIB. ADIB raised $1 billion in late 2012 through the world's first ever Sharia-compliant hybrid tier 1 sukuk and the region's first publicly issued perpetual tier 1 instrument.