Arab Banking Corporations share capital to be increased by US$500 million through rights issue
Manama, Bahrain: Bahrain-headquartered Arab Banking Corporations (ABC) 2007 consolidated accounts were ratified at the 2007 meeting of the General Assembly convened today in Manama, Kingdom of Bahrain.
ABC recorded a net profit of US$125 million for 2007 compared to US$202 million recorded in the previous year. The operating results for 2007 were adversely impacted by the US sub prime crisis.
ABCs Board of Directors at their meeting held prior to the General Assembly called for an Extraordinary General Meeting on 29 April 2008 to approve the proposed increase in the authorized capital of the bank from $1.5 billion to $2 billion with a proposal to increase the issued capital from $1 billion to $1.5 billion by way of a pre-emptive rights offering to existing shareholders.
The Board has also resolved to issue a subordinated debt of $500 million in April 2008 which will be subscribed by the three principal shareholders of ABC. The proceeds raised by way of this subordinated debt will be used subsequently for subscribing to the rights offering.
Arab Banking Corporation (ABC) was incorporated as a Bahrain joint stock company in 1980 by Amiri decree in the Kingdom of Bahrain. ABCs principal shareholders are the Kuwait Investment Authority, the Central Bank of Libya and the Abu Dhabi Investment Authority. ABC is listed on the Bahrain Stock Exchange.
The ABC Group is a leading bank in the Middle East and North Africa and operates as a wholesale bank. ABC provides a full range of retail and commercial banking, corporate finance, discretionary fund management, foreign exchange, derivatives, Islamic banking and financial advisory services in the markets in which it offers those services.
ABCs strategy of diversified growth led to the development of its widespread network of branches, representative offices, subsidiaries and affiliates in Arab world countries and international financial centres, including London, Paris, Milan, Frankfurt, New York, Singapore, Tripoli, Tunis, Algiers, Egypt, Bahrain, Beirut, Abu Dhabi, Tehran, Amman and Baghdad.