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Amãna Bank set to increase capital to Rs.10bn via rights issue

20 June 2017 12:02 am - 0     - {{hitsCtrl.values.hits}}

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Amãna Bank has received an approval in principle from the Colombo Stock Exchange (CSE) for listing of additional shares to be issued through its proposed rights issue.  Upon securing the shareholder approval at the forthcoming extraordinary general meeting (EGM) on July 4, 2017, the bank plans to issue 1,250,695,267 new shares at Rs.3.80 per share in a ratio of one new ordinary share for every one ordinary share held. 
The bank’s net asset value per share, which stood at Rs.4.66 as at March 31, 2017, was 22 percent higher in comparison to the rights issue price, indicating a discount of 86 cents.

Upon full subscription, the rights issue will raise a sum of Rs.4.75 billion, thereby taking the bank’s core capital beyond the stipulated Rs.10 billion mark well in advance of the statutory deadline of January 2018. 
The bank has already received commitment from the Islamic Corporation for the Development of the Private Sector (ICD) to subscribe to the issue through its IB Growth Fund Labuan LLP (IBGF). 
IBGF in conjunction with its ultimate parent Islamic Development Bank (IDB), which already has a 9.62 percent shareholding in the bank, has been granted the approval from the Central Bank of Sri Lanka to hold up to 29.99 percent of voting shares of the bank. 
Having commenced commercial banking operations in August 2011, the bank started recording core banking profits since the fourth quarter of 2014. 
Commenting on the bank’s progress, Chief Executive Office Mohamed Azmeer said, “The bank has been consistent in maintaining above industry average growth in total assets, customer advances and customer deposits. 
While recording impressive growth in advances, the bank succeeded in managing its NPA well below the industry average. The growth in deposits was achieved while maintaining a high CASA ratio well above the industry average.”
The bank’s borrowing to asset ratio stood at 1.35 percent in YE 2016 against the industry average of 18.43 percent, showcasing the minimal dependency on external borrowings.
“Along with the participation of ICD and our other strategic foreign and local shareholders, the funds raised through the rights issue will support the bank’s future expansion activities in taking our unique and people-friendly banking model across the nation,” Azmeer added.
Amana Bank is the country’s first licensed commercial bank to operate in complete harmony with the globally growing non-interest-based banking model. 

 

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