DUBAI, March 9 Bank AlJazira, one of
the kingdom's smaller banks, plans to raise its capital by 30
percent through a bonus share issue, it said on Thursday.
The bank said the capital increase to 5.2 billion riyals
from 4 billion riyals ($1.07 billion) would be completed by
issuing three new shares for every 10 shares held, paid for by
capitalising 1.2 billion riyals of retained earnings.
No money is being raised from shareholders, who are getting
the new shares for free, but the share issue effectively boosts
the bank's equity and therefore supports future lending.
The bank, in which the government of Pakistan has a 5.8
percent stake, said the move required the approval of
Bank AlJazira in January reported a 4.4 percent drop in
fourth quarter net profit.
($1 = 3.7503 riyals)
(Reporting By Tom Arnold. Editing by Jane Merriman)