- KUWAIT: Bahrain-based bank Ithmaar raised 51.5 percent of $200 million rights issue, as part of its plans to raise capital following heavy losses in 2009.
Earlier this month, the bank said it planned to raise $400 million -- up to $200 million by selling equity to existing shareholders at $0.25, compared to Sunday's closing price of $0.20. It also said it would sell a mandatory convertible Islamic bond for the remainder. "The subscription period ended on Thursday, and we are pleased to report that the rights issue has raised $103 million," said Ithmaar's Chief Executive Mohamed Hussain in a statement on the Bahraini bourse website on Monday.
Ithmaar has been trying to recapitalize after posting a $235 million loss for 2009 due to bad loans and lower asset valuations. It also plans to convert itself into a retail bank by integrating its fully owned Shamil Bank, a Bahraini retail bank.
Debt capital markets in the Gulf Arab region have remained mostly shut to the private sector over the past months, as confidence has been hit by corporate defaults and the debt crisis in Dubai, the region's business and tourism hub.