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Jeddah-based IDB to up stake in Sri Lanka’s Amãna Bank

Jun 19, 2017 18:40 PM GMT+0530 | 0 Comment(s)

ECONOMYNEXT – Islamic Development Bank (IDB) group, based in Jeddah, will raise its stake in Sri Lanka’s Amãna Bank through its rights issue to raise Rs. 4.75 billion to take the bank’s core capital beyond the stipulated Rs.10 billion mark.

Amãna Bank said in a statement it plans to issue 1,250,695,267 new shares at Rs. 3.80 per share in a ratio of 1 new ordinary share for every 1 ordinary share held (1:1).

“The bank has already received commitment from the Islamic Corporation for the Development of the Private Sector (ICD) to subscribe to the issue through its IB Growth Fund Labuan LLP (IBGF),” it said.

“IBGF in conjunction with its ultimate parent Islamic Development Bank (IDB), who already has a 9.62% shareholding in the bank, has been granted approval from the Central Bank of Sri Lanka to hold up to 29.99% of voting shares of the bank.”

Amãna Bank, Sri Lanka’s first Licensed Commercial Bank to operate on the non-interest based banking model, has a Net Asset Value per share of Rs. 4.66 as at 31 March 2017, 22% higher than the rights issue price, indicating a discount of 86 cents.

Amãna Bank Chief Executive Mohamed Azmeer said the bank has been consistent in maintaining above industry average growth in total assets, loans and deposits.

The bank’s borrowing to asset ratio stood at 1.35% in 2016 against the industry average of 18.43%, showcasing the minimal dependency on external borrowings, he said.

 “Along with the participation of ICD and our other strategic foreign and local shareholders, the funds raised through the rights issue will support the bank’s future expansion,” Azmeer said.
(COLOMBO, June 19, 2017)
 


 

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