MANAMA: Khaleeji Commercial Bank (KHCB) has finalised issuance of sukuk worth $159 million fully covered by GFH Financial Group as the sole subscriber.
The issuance proceeded after the approval of regulatory authorities and the extraordinary general assembly earlier this year, as shareholders had initially supported the bank to issue sukuk as additional tier 1 capital worth up to $200m, with the aim of reinforcing the capital base and contributing to the achievement of intermediate objectives within the bank’s new strategy.
KHCB chief executive Sattam Algosaibi said, “The successful closing reflects the well-thought-out financial and investment approach in opting for the best solutions to support the capital and develop the business towards achieving important intermediate objectives within our new strategy, as we are keen to deploy the improved capital base in further enhancing the quality of assets and developing banking services provided to individuals, SMEs, and corporates.
Impact
“Supporting the bank’s capital will have a great impact on strengthening our financial position and enabling us to enter new strategic partnerships and promising projects that would establish a foundation for us to achieve growth through reducing the cost of financing and strengthening capital adequacy, in addition to investing in the development of eBanking systems and the quality of services provided to our valued clients.”
Through the enhancement of its capital, KHCB seeks to push the wheel of development to complete its plans to digitise infrastructure with the goal of investing in current and future opportunities.
Mr Algosaibi said, “the current situation has created new opportunities, and the increase in capital will give us the advantage to be proactive in investing in these opportunities, including finding alternative ways to continue providing financial services. Moreover, the bank was one of the first to adopt these methods through our initiative to launch many programmes and digital products that facilitate our valued clients’ access to our innovative banking services.”
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