Dubai Islamic Bank Plans $861 Million Share Issue for Expansionby
Bank plans to sell 988.4 million shares at 3.20 dirhams each
DIB had raised $500 million in March from Islamic bond sale
Dubai Islamic Bank PJSC, the United Arab Emirates biggest bank complying with Muslim banking rules, said it plans to raise 3.6 billion dirhams ($861 million) from a share issue, as first-quarter profit increased.
The state-controlled lender will sell 988.4 million shares at 3.20 dirhams apiece, it said in a statement to the Dubai bourse on Wednesday. DIB’s board approved the start of the share sale process that will almost double share capital and support growth, it said.
DIB reported a 18 percent rise in first-quarter profit to 1 billion dirhams, the bank said. Profit attributable to shareholders advanced 7 percent to 875 million dirhams as impairments fell.
Lending surged more than 30 percent in each of the past two years amid economic growth in the emirate. Lending rose 6 percent in the three months through March to 103 billion dirhams. The bank also raised $500 million in March from the sale of five-year Islamic bonds to help fund expansion.