Prince Amr told the bank's shareholders on Sunday that the bank had received verbal approval to proceed with its reorganization plans, and that formal, written approval will follow shortly.

Speaking at the shareholders' general assembly that was held at the Diplomat Hotel in Bahrain, Prince Amr told shareholders that the bank would immediately implement plans for a comprehensive reorganization with its wholly owned subsidiary, Shamil Bank.

The reorganization, which will turn Ithmaar Bank into a premier Islamic retail bank, involves both banks pooling their resources together to create a single, more efficient and significantly stronger retail-focused bank with an Islamic license, under the Ithmaar brand. Ithmaar shareholders approved plans for the reorganization in November 2009.

"The Ithmaar board of directors received yesterday (Sunday) assurances from the Central Bank of Bahrain, the kingdom's financial services regulator, that the reorganization plans had been approved and that formal written approval is now being issued," said Prince Amr. "This allows us to start Ithmaar's transformation, from a conventional investment bank into an Islamic retail-focused bank, and to focus upon realizing our new strategic objectives," he said.

Following the reorganization, and as part of its new board-approved three-year strategic plan, Ithmaar will focus on developing its retail operations by expanding its products and services range as well as its delivery channels, and on expanding its geographical reach across the GCC region by offering a wide range of corporate banking services. To fund this planned expansion, Ithmaar had announced capital-raising initiatives designed to raise a total of up to $400 million.

The bank's capital raising initiatives, which include the launch of a mandatory convertible sukuk, kicked off on a high note earlier this month with the successful launch of a rights issue.

"The subscription period ended on Thursday, and we are pleased to report that the rights issue has raised $103 million," said Ithmaar Bank Chief Executive Officer Mohamed Hussain. "The offering was an opportunity for current shareholders to further consolidate their stake in Ithmaar Bank - and the fact that it proved so successful is testimony to our shareholders' unwavering faith in the bank's potential," he said.

"The increased capital, which comes immediately ahead of the CBB's formal, written approval of our reorganization plans, will help further support the bank's retail, corporate and financial institutions activities, and enhance shareholder value by amplifying existing synergies," said Hussain. "This perfectly positions Ithmaar for its planned growth, and we are grateful to the CBB for their continued support and guidance," he said.

At the AGM, Ithmaar shareholders elected a new board of directors. The new board consists of Prince Amr, Khalid Abdulla-Janahi, Ya'acob Bin Tunku Abdullah, Abdulhameed M. Aboumoussa, Sheikh Mohammed Youseef El Khereiji, Sheikha Hissah bint Saad Al-Sabah, Khalil Nooruddin, Zamil Abdulla Al-Zamil, Mohammed A. Rahman Bucheerie and Nabil Khalid Kanoo.