International Investment Bank increases paid up capital to $110m

This reflects an increase of 67 million new shares, and the registration on 31 December 2007 of the increased capital after obtaining the required approvals of the Central Bank of Bahrain (CBB) and the Ministry of Industry and Commerce (MOIC).

IIB offered 27 million additional "rights" shares to existing shareholders and 30 million new shares to a selected group of new strategic investors, financial investors and high net worth individuals from across the GCC region, for a total of new 57 million shares.

Whilst all of the 27 million "rights" shares were 100% subscribed for by existing investors, the total subscription for the new 30 million private placements was 40 million shares resulting in subscription coverage of 133% relative to the offered shares. In recognition of the strong investors' interest and in accordance with authority granted to it by the Extra Ordinary General Meeting, the Board of Directors (BOD) resolved to accept the entire amount of oversubscription after further obtaining the approvals of the CBB and MOIC.

Commenting on this momentous occasion, H.E Mr. Saeed AbdulJaleel Mohammed Al Fahim, Chairman declared that "Our decision to increase our capital was essentially based on the Bank's strategic vision of achieving steady growth by making larger and diversified acquisitions and development projects in both the regional and international markets, which essentially entail a sizeable, secure and long-term funding base."

The Chairman elaborated that "IIB's financial performance, investment strategy, growth plans and strategic vision have been clearly validated by the encouraging response to the capital increase from both our existing shareholders as also new regional investors. This resounding testimony demonstrates that our bank is attracting investors' interest. We believe that this is an accomplishment; especially if one takes into consideration the relative short operating history of the Bank and the challenging and turbulent investment climate that banks have witnessed in the recent years."

Articulating on its plans in the coming years, Mr.Al Fahim added that "our Bank is well poised to deliver its planned profitability and results in 2008 and in the years to come on the strength of its stronger capital base, robust deals currently in its pipeline, continual support from shareholders, the efforts of IIB's strong management team and staff and finally the support and cooperation of the CBB and MOIC."

Reaffirming Mr. Fahim's thoughts, Mr. Aabed Al Zeera, CEO of IIB, further stated: "The oversubscription of our new shares offering and the addition of more than 60 new shareholders unquestionably signifies a broader investors' appeal and confidence in IIB's professional execution of its strategy."

He stated: "We are now in a position to make forays into larger investments in both real estate and private equity. We are close to finalizing a number of such investments that are currently in the advanced stages of review and due diligence."

Commenting on the bank's diversification strategy Mr. Al Zeera stated that: "our Bank's strategy of diversifying by geography and sectors has commendably helped build its portfolio. Our Bank has developed, over the last few years since inception, a well diversified portfolio, aimed at delivering superior risk adjusted returns, comprising investments in the power sector, income generating real estate, real estate development projects in the UK, France, Germany, Saudi Arabia, UAE and Bahrain. It has also concluded strategic investments in the financial services sector through investments in European Islamic Investment Bank (EIIB), UK, Amrah Bank, Azerbaijan and BIIH, a UK based Takaful insurance company."

Finally, Mr. Zeera concluded by saying: "I would like to take this opportunity to congratulate all our shareholders on the Bank's accomplishments to date and its pre-eminent position amongst peers in the investment banking industry. I would like to extend my thanks to our Board of Directors for their unrelenting support and guidance, to our management team and staff for their efforts and finally to the Central Bank of Bahrain and the Ministry of Industry and Commerce."