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BisB to hold its Extra-Ordinary General Meeting on 27 October

Bahrain Islamic Bank to consider and approve reduction of its issued and paid-up capital and issuance of up to 200,000 Shares

Bahrain Islamic Bank (BisB) B.S.C. has announced the date for convening its Extra-Ordinary General Meeting at 10.00 a.m. on Tuesday 27 October 2015 on the 9th Floor of Al Salam Tower, Diplomatic Area

BisB has invited its shareholders to attend the Extra-Ordinary General Meeting to discuss and approve its agenda, which contains consideration and approval of reduction in its issued and paid-up capital in order to write-off its accumulated losses.

The Board of Directors of Bahrain Islamic Bank in their meeting on 2 August 2015, proposed to write-off accumulated losses of BD 27,397,310 as of 30 June 2015, by adjusting BD 11,807,778 against statutory reserve, BD 1,000,000 against general reserve, BD 29,754 against share premium and BD 14,559,778 against paid up share capital, thereby reducing the Bank’s paid up share capital by 15.34% (reduction of 2 shares for each 13 shares approximately) from BD 94,907,023 to BD 80,347,245.

The agenda also includes the consideration and approval of issuance of up to 200,000,000 ordinary shares with a nominal value of BD 0.100 each whose name appears on the share register on such date as determined by the Board of Directors (the “Record Date”), in accordance with CBB Rulebook Volume 6 and commercial companies law, articles 128 and 129, and subject to the approval of the Central Bank of Bahrain.

The Extra-Ordinary General Meeting will also authorize the Board of Directors to decide upon the terms and conditions of the rights offer including the offer price, premium, if any, offering period, record date and related timelines, the proportion of rights and necessary documentation thereof.

The Extra-Ordinary General Meeting will also consider and approve exempting any existing shareholder whose ownership reaches or increases up to 30% or more to make a mandatory offer to all shareholders as prescribed in the “Takeover, Merger and Acquisition Module” (TMA) issued by the Central Bank of Bahrain.

In addition to this, the Extra-Ordinary General Meeting will read out the minutes of the Ordinary General Meetings No. (39) and the Extra-Ordinary General Meeting No. (21) of 2014, held on Monday 3 Jamadi II 1436 H, corresponding to 23 March 2015, and approve them.

On the occasion of convening of the Extra-Ordinary General Meeting, Mr. Hassan Amin Jarrar, BisB’s Chief Executive Officer, said the approval of the items listed on the agenda of the Bank by the shareholders, reducing the paid-up capital by 15.34% and issuance of 200,000,000 ordinary shares, would ensure maintaining strong liquidity levels, while the Bank continues to adopt a development strategy that would serve all parties, including customers and shareholders.

Mr. Hassan Jarrar said the Bank continues to implement its five year strategy for the period 2014-2018, which aims at improving performance in different business sectors of the Bank in the foreseeable future and maintaining the shareholders’ equity and capital adequacy, while maintaining the required liquidity to meet the requirements of Basle 3 Standard, thus ensuring the achievement of better financial results.

Mr. Hassan Jarrar added that the bank continues to enhance its trade mark by focusing on the core retail and corporate banking activities for developing the IT infrastructure because it represents the future of banking operations during the next stage, in addition to seizing financing opportunities and attracting a larger number of customers to develop the retail financing portfolio.

Mr. Hassan Jarrar emphasized that the Bank is keep abreast with the high competitiveness standards on the local market and maintaining its premier position in Islamic banking, thanks to its new strategy approved by the Board of Directors and to its reliance upon highly qualified national human resources in order to steer ahead for wider horizons of growth, development and prosperity, in addition to enhancing customers’ trust and confidence in the Bank’s advanced services offered to its clientele.

He noted that the Bank follows a modern strategy which aims at developing the current human resources by attracting leading personnel on a worldwide level who can contribute to the implementation of the Bank’s strategy and to drawing up an integrated programme to develop young administrative cadres.

It should be noted that in case the quorum is not obtained during the 1st Extra-Ordinary General Meeting, i.e. if it is not attended by shareholders representing at least two thirds of the Bank’s capital, the Extra-Ordinary General Meeting will convene a second meeting on 3 November 2015, at the same time and place. In case the quorum is not obtained during the 2nd meeting, i.e. if it is not attended by shareholders representing at least one third of the Bank’s capital, the Extra-Ordinary General Meeting will hold a 3rd meeting on 10 November at the same time and place. The 3rd meeting will be valid if attended by shareholders representing at least one quarter of the Bank’s capital.