BMB Investment Bank completes capital raising

Of this, US $35.5 million was raised through a rights offering to the Bank's existing shareholders, while the remainder was raised through a private debt and deposit for equity conversion. With this capital increase, the Bank's capital adequacy ratio now stands at 15.47%.

The conclusion of the capital raising has also paved the way for the activation of the refinancing agreement between BMB and its group of US $75 million syndicated lenders. The refinancing, the newly injected capital, and the US $20 million medium term secured liquidity facility previously obtained by BMB, all combine to provide the solid base the Bank needs to move forward and rebuild its business.

New share certificates will be issued to shareholders by the Bank's share registrar, KPMG Fakhro, on August 31st ahead of the resumption of trading in the Bank's shares on the Bahrain Stock Exchange on September 4th.

In commenting on the capital raising, Shaikh Ali Jarrah Al-Sabah, Chairman, said:
'We are extremely pleased with the success of our capital raising and the activation of the refinancing agreement. We now look forward to the time ahead and the opportunity we have to rebuild the Bank and its business. We would also like to thank the Bahrain Monetary Agency and the Government of Bahrain for their steadfast support and wise guidance during these difficult years.'

Chief Executive Albert I Kittaneh added:
'We look forward to the time ahead as we are invigorated by this capital injection and our strong return to profitability. We are strongly focused on maintaining and ever increasing that profitability as we work to rebuild the Bank's credibility and former standing.'

Bahrain Middle East Bank (E.C.) was established as an Offshore Banking Unit in 1982. Although currently not trading, its shares are listed on the Bahrain Stock Exchange under (BMEB.BH).