Sharjah Islamic Bank SCA (the Bank) approved, during its Annual General Meeting, an increase in its capital through a strategic rights issue aiming to raise a total amount of AED 2.59 billion. This initiative is a pivotal step to enhance the Bank's strong internal growth momentum and provide long-term intrinsic value to its shareholders. The rights issue offers shareholders a unique opportunity to participate in the Bank's continuous success journey by subscribing to new shares. This strategic initiative serves the interests of the Bank and its shareholders by enhancing the ability to achieve tangible asset growth while taking proactive steps to meet changing regulatory requirements, in line with the Bank's continued focus on delivering strong and sustainable returns. The proposed rights issue will increase the issued capital of Sharjah Islamic Bank from AED 3,235,677,638 to up to AED 4,314,236,850 by issuing up to 1,078,559,212 new shares. The new shares will be issued at an issue price of AED 2.40 per share, reflecting a nominal value of AED 1.00 per share plus an issue premium of AED 1.40 per share. The Government of Sharjah, which holds a substantial stake in Sharjah Islamic Bank through Sharjah Asset Management Company and Sharjah Social Security Fund, fully supported the capital increase through the rights issue, confirming its commitment as a current shareholder to fully subscribe to its pro-rata portion of the offered shares, which is a solid testament to its support for the Bank's future ambitions. The Bank intends to use the net proceeds from the rights issue to strengthen its capital base beyond regulatory capital adequacy requirements, expand the Bank's balance sheet growth, and ensure the continuity of providing rewarding returns to shareholders. His Excellency Abdull Rahman Al Owais, Chairman of the Board of Directors of Sharjah Islamic Bank, stated that this historic announcement is a testament to the Bank's long-term commitment to its shareholders and the investor community in the United Arab Emirates, expressing his delight at providing the Bank's shareholders with the opportunity to participate in its ongoing growth and success journey while affirming its role as a key partner in the growth agenda of the Government of Sharjah and the country's wise leadership. Meanwhile, His Excellency Mohamed Abdullah, Chief Executive Officer of Sharjah Islamic Bank, stated that this historic deal is a pivotal step for the Bank, as it enables it to accelerate its growth pace and provide added value to its shareholders, confirming its continuous commitment to maintaining a strong capital base and supporting the Bank's sustainable development. Emirates NBD Capital LLC was appointed as the lead manager, and Emirates NBD PJSC as the receiving bank, with Sharjah Islamic Bank also acting as a receiving bank.
