Loss-making Bahrain Islamic Bank, a Shariah-Compliant bank, plans to try to raise up to $143 million in a rights issue at a 37 percent discount, the first time a major Bahraini retail bank has sought fresh capital since the financial crisis.
Bahrain Islamic’s shares, which rarely trade on Bahrain’s stock exchange, closed at 159 fils on Monday. The issue was priced at 100 fils and will be offered on the basis of up to three new shares for every four held. (Fils is the name of Bahrain’s currency.)
Bahrain Islamic posted a full-year net loss of 19.4 million Bahraini fils for 2009 and a 6.9 million loss for the second quarter of this year.
The Kuwait government holds a controlling stake in the troubled bank.