Dubai’s Emirates Islamic launches Dhs1.5bn rights issue

Emirates Islamic Bank, the shariah-compliant arm of Dubai’s largest lender, launched its Dhs1.5bn ($408m) rights issue on Tuesday.

Shareholders, who hold shares in the bank at the close of business on Tuesday, will be eligible to the subscription which begins on December 14 and ends on December 28, the Dubai-based lender owned by Emirates NBD said in a bourse statement.

The statement said allocation of the new shares will be made on December 29.

The bank’s chief executive Jamal Bin Ghalaita told Reuters on October 10 the lender planned to complete its rights issue by early December.

The rights issue will increase the bank’s paid up share capital from Dhs3.93bn to Dhs5.43bn, it said in a statement. Each new share will be priced at Dhs1.

Shareholders are eligible to buy one share for every 2.63 shares held on the subscription date.

Emirates NBD is the book runner for the transaction.