Doha Bank approves share sale to Qatar wealth fund

DUBAI Dec 22 (Reuters) - Doha Bank DOBK.QA said on Monday shareholders had approved a plan to raise its capital by up to 20 percent in order to sell a stake to the Gulf state's sovereign wealth fund, the Qatar Investment Authority (QIA).

The shares would be issued at their closing price on Oct. 12, Doha Bank said in a statement on the bourse website. The shares closed at 42.7 riyals ($11.72) that day.

Doha Bank said the capital increase would take place in two stages.

In October, the QIA launched a $5.3 billion plan to buy shares of listed banks to shore up investor confidence as regional markets slump during a global economic downturn.

Banks including Commercial Bank of Qatar COMB.QA and Qatar Islamic Bank QISB.QA have announced similar plans to sell stakes to the QIA, which wants to ensure that banks in the Gulf state are able to keep project financing on track. (Reporting by Daliah Merzaban; Editing by Inal Ersan)