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First Gulf Bank to issue bonus shares

UAE-based lender First Gulf Bank has unveiled plans to distribute 75 million shares bought under its buyback programme as bonus shares, Reuters has reported. The share buyback programme was initiated in early 2009 to counter poor trading due to weak market sentiment and improve liquidity. "We did not want to sell the shares, we decided to give back this advantage to the shareholders in the form of bonus shares," a bank official told was quoted as saying by the news service.