Islamic Finance 

ADIB’s Shareholders approve ADIB’s capital proposal to support growth

| 19 August, 2018

ADIB HQ

Abu Dhabi, August 19, 2018: Shareholders of Abu Dhabi Islamic Bank (ADIB), a leading Islamic financial institution, have approved proposal for a rights issue of AED 1 billion, as recommended by the Board of Directors of ADIB, to raise the Paid and Issued Share Capital through a tradeable rights issue of 464 million new shares to its shareholders. Shareholders also approved the issuance of USD 750 million (AED 2.75 billion) perpetual Tier 1 sukuk, and the repayment of its USD 1 billion (AED 3.67 billion) sukuk issued in 2012.

 

The proposals were passed by the requisite majority at the General Assembly for shareholders, held on August 19, 2018 at the Abu Dhabi Chamber of Commerce and Industry. The capital plan has been developed to support the bank’s continued growth and its objectives in achieving its strategy while meeting regulatory requirements.

 

Mr. Khamis Buharoon, ADIB Vice Chairman and Acting CEO, said: “In voting in favour of ADIB’s proposed capital plans, our shareholders have clearly understood and endorsed the bank’s growth strategy. The bank has performed strongly in recent years, demonstrating a consistent and sustainable track record of profitability and operational strength. Our focus has always been on maintaining a solid capital base, which can provide stability and enable the bank to expand and grow from a position of strength.”

 

The rights issue will increase ADIB’s Issued and Subscribed to Share Capital from AED 3,168,000,000 to AED 3,632,000,000 through the issuance of 464,000,000 new shares, issued at AED 2.16 per share (nominal value of AED 1 per share plus an Issuance Premium of AED 1.16 per share). This represents a 45 percent discount to the market share price as of July 25, 2018.

 

The bank will continue to focus on expanding its retail business, providing market-leading digital banking services, while capturing opportunities across corporate, transaction and correspondent banking. The bank will also continue to implement the cost control measures that were implemented during the year.  ADIB reported a 3 percent increase in net profit for the first half of 2018, which reached AED 1.16 billion. Group revenues continued to grow, while the bank maintained a disciplined approach to cost and risk management. The bank paid a dividend of 28.87 percent of share capital for 2017, representing 39.76 percent of full year net profits.

 

ADIB will shortly announce the timetable for the rights issue, including the ex-rights date, rights trading period, subscription period, and other pertinent details of the rights issue following the approval of the Central Bank of the UAE and Securities and Commodities Authority (SCA).

 

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About ADIB

ADIB is a leading bank in the UAE with more than AED 122 billion in assets. Its 1 million-plus customers benefit from the third largest distribution network in the UAE with 82 branches and more than 710 ATMs. The bank also offers world-class online, mobile and phone banking services, providing clients with seamless digital access to their accounts 24 hours a day. ADIB provides retail, corporate, business, private banking and wealth management solutions. The bank was established in 1997 and its shares are traded on the Abu Dhabi Securities Exchange (ADX).

ADIB remains one of the leading banks in the recruitment, development and promotion of local talent and has one of the highest Emiratisation rates across banks in the UAE.

The Bank has presence in six strategic markets including Egypt, the Kingdom of Saudi Arabia, the United Kingdom, Sudan, Iraq.

Named the world's Best Islamic Bank (by FT's The Banker Magazine), and Best Islamic Digital Bank in the Middle East (by Global Finance), ADIB has a rich track record of innovation, including introducing the award-winning Ghina savings account, award-winning co-branded cards with Etihad and Etisalat and a wide range of financing products.

For media information, please visitwww.adib.aeor contact:

 

ADIB                                                                                                       Brunswick Group

lamia Hariz                                                                     Mouaffak Haijar

Head of Corporate  Communications                                               Account Director

Direct: +971 024977427                                                                    Direct: +971 2 234 4600

 

 

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