Mar 24, 2015
DUBAI, March 24 (Reuters) – National Bank of Fujairah has issued 500 mln dirham worth of tier 1 capital, it said in a statement to the stock exchange, the latest Gulf bank to replenish its reserves after a period of strong lending growth.
The capital-enhancing issue, that would boost a bank’s Tier 1 – or core – capital, is a perpetual issue structured to comply Basel III norms, the statement said.
The issue was arranged by the lender in partnership with Rasmala Investment Bank, and the transaction was oversubscribed by investors ranging from insurance companies to government entities, the statement showed. “Funds raised will be used to support the bank’s ongoing growth plans,” the lender said in the statement.
Since 2010, the compound annual growth rate of the bank’s loan book and shareholders’ equity have been at 17.3 percent and 16.2 percent respectively.
National Bank of Fujairah expects the latest tranche to improve its Tier 1 capital adequacy ratio to 15.9 percent, up from 14.6 percent in 2014.