Taib Bank to increase capital

The increase in paid-up capital will be through a rights issue of approximately 138 million shares of the bank having a face value of $1 each at a premium of $1.05.

The issurance is subject to regulatory approvals. Unsubscribed amounts in the rights issue, if any, will be issued through a private placement.

Shareholders of the bank at the annual general meeting held immediately earlier, approved the distribution of a share dividend of five per cent of the paid-up capital of the bank.

The annual general meeting of shareholders also approved the appointment of five new directors, with effect from November 8, 2007, nominated by Dubai Financial Group, which acquired 60 per cent of the shares of the bank. As a result, the bank now has nine directors on its board, five of whom have been nominated by Dubai Financial Group.

“The increase in the capital of Taib Bank is to strengthen the capital base of the bank in keeping with the substantial enlargement of the bank’s activities envisaged for the coming year,” said Iqbal Mamdani, Vice-Chairman of Taib Bank.