international investment bank to more than double its paid-up capital following further growth in 2006
International Investment Bank (IIB), a globally focused investment bank based in Bahrain, today announced that it has received shareholder approval to more than double its issued and paid-up capital from US$43 million to US$100 million. With the associated share premium, this will increase IIB’s total shareholder funds from US$61.4 million to US$170 million. This capital increase follows the ongoing rapid growth of the Bank and its strong financial performance since its establishment in October 2003.
A meeting of IIB’s shareholders approved the capital increase at the Bank’s General Annual Assembly Meeting (AGM) held today at the Ritz Carlton Hotel in Bahrain. Subject to final regulatory approval, IIB will raise a total of US$108.6 million through the issuance of an additional 57 million ordinary shares, of which 27 million shares will be issued to existing shareholders of the Bank for a value of US$48.6 million, and the remaining 30 million shares, valued at US$60 million, will be issued to newstrategic investors.
Commenting on the capital increase, Mr. Saeed Abdul Jalil Al Fahim, Chairman of IIB, said, “We are delighted to make this announcement, which underscores the ongoing success of the Bank and recognition among investors of the strength of IIB’s strategy and future prospects. Since inception, IIB has consistently delivered exceptional results and value to investors and shareholders. In addition, the Bank has exceeded expectations on recent investments by achieving significantly higher returns than anticipated and doing so in shorter investment horizons. This has been the result of optimal management of IIB’s broad and well-diversified portfolio of investments, and prudent and well planned exits. With a strengthened balance sheet and the support of an even stronger shareholder base, the Bank is well positioned to continue its rapid growth and further enhance the size and scope of its investment activities across key regional and international markets.”
Mr. Aabed Al-Zeera, Chief Executive Officer of IIB, added: “Having announced our intention to increase our paid-in capital last year, we are now pleased to announce the formal approval of our shareholders for our capital-raising activities. Supported by our continued strong performance and results, we have attracted strong interest from a select group of new investors who would like to participate in the Bank’s future success. We purposely embarked upon this process during 2006 and the first part of 2007 in a deliberate and paced fashion so as to identify the right individuals and institutions who will be capable of effectively supporting and contributing to IIB’s ongoing development. We believe that these are precisely the types of investor that we have attracted to join our elite shareholders and who will further enrich our diversity .
“Furthermore, we are also pleased that our existing shareholders have agreed to waive part of their rights to the new shares in order to permit additional investors to broaden the Bank’s shareholder base, which will have positive implications for our future business. IIB has seen significant expansion in its operations over the past year as well as the announcement of a number of compelling new investment opportunities and highly rewarding exits. We believe that with an enhanced capital base we are poised for further growth and participation in an even broader range of new and larger scale investments here in the region as well as in key international markets such as Europe and Asia, where we have already concluded a number of successful transactions and exits in 2006 and previous years. We will continue our policy of creating strategic alliances with major regional and international players, with a view to capitalizing on our synergies ” added Mr. Al- Zeera.
IIB’s General Assembly also ratified the Bank's financial results for 2006, which saw its net profit increase by 92.2% to US$13.5 million and its total income almost double, reaching US$24.6 million. The growth in business volumes was also reflected in the balance sheet, with total footings increasing by 49.2% to US$94.5 million.
Assets under management at year-end 2006 stood at US$181.7 million, a 54.5% increase over the US$117.6 million total in the previous year. The Capital Adequacy Ratio of the Bank was 89%, remaining comfortably above the regulatory minimum requirement of 12%.
Given these excellent results the General Assembly meeting also approved a dividend payment of 10% of paid-up share capital to shareholders, as recommended by the Board of Directors. The Bank is retaining US$7.8 million of its 2006 earnings in order to further enhance its capital base.
About International Investment Bank
International Investment Bank B.S.C. (IIB) was incorporated in Bahrain in October 2003 as an Islamic investment bank, with an authorised capital of US$200 million and a paid-up capital of US$43 million. Its shareholders are high net worth individuals, business houses and institutions from the GCC states. The Bank undertakes three core business activities - private equity, real estate and asset management – and aims to offer its clients an internationally diversified range of investments generated through its network of strategic partnerships.