RIYADH, 31 October 2007 — SABB Board of Directors has agreed to raise the capital of SABB to SR6 billion ($1.6 billion) by issuing 3 bonus shares for each 5 shares held.
In a statement yesterday, the bank said the board will recommend to the extra-ordinary general meeting scheduled in the first half of 2008 to increase SABB’s paid capital by 60 percent from SR3.75 billion ($1 billion) by adding 225 million shares to the bank’s shares before the increase (375 million shares).
SABB Chairman Abdullah Mohammed Al-Hugail said the recommendations for the increase of capital have been made in line with the success achieved by the bank in recent years, which have enhanced the confidence of the bank’s customers in the bank and added to the strong support by the shareholders of all bank activities.
Al-Hugail said this achievement would not have been recorded without the commitment and effort of the bank’s staff and expressed his thanks for the support from SABB’s shareholders, customers and staff.
The capital increase represents a continuation of the bank’s policy to grow its capital and annual profitability, particularly in the present environment that dictates faster growth to meet the banking requirements of the local market, the statement said.
Upon obtaining the regulatory approvals for the increase of the bank’s capital, entitlement to the bonus by shareholders will be in the end of trading on the day the extraordinary general meeting is held for the capital increase.