BAHRAIN, 16 June 2005 — BMB Investment Bank (BMB) has announced that its $50 million rights offering is set to commence on June 19. The offering will last for two weeks and is open to the bank’s existing shareholders. Approval was granted by the shareholders for a capital restructuring and rights issue at the bank’s extraordinary general meeting held last month. The bank’s capital is being reduced to cover accumulated losses and the number of issued shares reduced accordingly. The bank will now be issuing 200 million of ordinary shares with a par value of $0.25 per share for a total amount of $50 million. These shares are on offer to the bank’s shareholders at the same percentage as their ownership in the bank prior to the capital restructuring.
“With this rights offering and private placement, we’re confident in our ability to set ourselves firmly on the path to growth and profitability,” BMB Chairman Ali Jarrah Al-Sabha said. The offering has already generated strong interest and the bank has received an undertaking from an existing shareholder to take up $33 million worth of new shares should the $50 million not be fully subscribed. An additional $50 million may be raised through private placement and a debt for equity conversion.