KFH receives approval from supervisory authorities to increase capital by 20%
- Kuwait: Wednesday, March 20 - 2013 at 16:27
- PRESS RELEASE
Kuwait Finance House (KFH) Chairman Mohammed Al-Khodairi said that the sums of money achieved by increase in KFH capital (KD64m), will be used to finance and support its expansion plans, develop its local market share, execute development plans, expand in various activities and services, and cement KFH's local and global status through upgrading work mechanisms.
It is worth noting that KFH had received necessary approvals by supervisory and regulatory authorities to summon capital increase by 20% that will be covered through allowing shareholders subscriptions in around 639 million shares at 500 fils per share. Share par value is 100 fils, and share premium is 400 fils. He went on to say that this increase coincides with KFH's increasing expansion, in light of a strong demand for Islamic banking services and products in Kuwait and worldwide.
Moreover, Al-Khodairi stated that through such a process, KFH creates new investment opportunities for shareholders, based on KFH's high performance and future growth potential. He explained that the increase aims to support KFH's competitiveness abilities, cement its financial status, and strengthen its ability to finance major projects.
Regarding the effect of the increase on capital adequacy ratio, Al-Khodairi noted that a methodical path was followed to develop a plan to manage KFH's capital to cover its current and future requirements. This was based on the results of the internal assessment of capital adequacy ratio, stress tests, and supervisory authorities requirements. KFH board made several initiatives concerning capital plan to reach targeted capital adequacy ratio of 17% in 2013.
Furthermore, he revealed that this increase will be offered during the coming general assembly meeting to obtain the approval of shareholders, where the plan will be announced in detail. It is expected that KFH will offer shares for subscription during the second half of this year.
KFH had announced earlier that it is willing to finance major projects in the development projects, in addition to financing Kuwaiti companies, since such efforts boost the national economy. KFH has also triggered a restructuring process that is based on current developments in the local and global economy fields.
In addition, KFH's overseas banks execute expansion plans in those countries and other neighboring markets, in order to seize rewarding investment opportunities. This allows the bank to diversify its investment field, increase profits, and sustain returns.
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