MANAMA, 29 March 2008 — Bahrain-headquartered Arab Banking Corporation’s (ABC) 2007 consolidated accounts were ratified at the 2007 meeting of the general assembly convened here last week.
ABC recorded a net profit of $125 million for 2007 compared to $202 million recorded in the previous year. The operating results for 2007 were adversely impacted by the US sub prime crisis.
ABC’s board of directors at its meeting held prior to the general assembly called for an extraordinary general meeting on April 29 to approve the proposed increase in the authorized capital of the bank from $1.5 billion to $2 billion with a proposal to increase the issued capital from $1 billion to $1.5 billion by way of a pre-emptive rights offering to existing shareholders.
The board has also resolved to issue a subordinated debt of $500 million in April 2008, which will be subscribed by the three principal shareholders of ABC. The proceeds raised by way of this subordinated debt will be used subsequently for subscribing to the rights offering.