Updated: Wed, 11 Nov 2009 07:56:40 GMT | By Agence France-Presse

Kuwaiti Islamic bank plans major rights issue

Kuwaiti Islamic lender International Bank said on Wednesday it plans to raise its capital by 45 percent.


Kuwaiti Islamic lender International Bank said on Wednesday it plans to raise its capital by 45 percent.

In a statement on the Kuwait Stock Exchange website, the bank said the share price in the rights issue will be at a nominal value of 100 fils (0.35 dollars) in addition to a premium of 70 fils (0.24 dollars).

The bank has capital of 103.7 million dinars (363 million dollars), which will rise to 150 million dinars (525 million dollars).

No date has yet been set for the rights issue of 466.6 million new shares to raise 79.3 million dinars (277 million dollars).

The bank posted a loss of 4.65 million dinars (16.3 million dollars) in the nine months to September 30. On Wednesday, the bank's share was trading at 216 fils (0.75 dollars).

The oil-rich Gulf state of Kuwait has six conventional and three Islamic banks.

Unlike conventional banking, Islamic finance is based on the principles of sharia or Islamic law, and charging interest on loans is regarded as usury. The system also bans dealings related to alcohol and gambling.

0Comments

Sports News

Jovetic brace lifts Man City over AC Milan in friendly
Jovetic brace lifts Man City over AC Milan in friendly

English Premier League champions Manchester City cruised to a 5-1 triumph over Italy's AC Milan on Sunday in a weather-hit friendly at Heinz Field, home of the NFL's Pittsburgh Steelers.

Celebrity Gossip

One Direction are being careful not to include anything which could upset their young fanbase in their new movie.
One Direction plan 'squeaky clean' movie

One Direction are being careful not to include anything which could upset their young fanbase in their new movie.