Amana Bank to raise Rs.6.67bn via rights issue

Amana Bank PLC has resolved to raise Rs.6.67 billion via a rights issue to beef up its capital buffers.
The bank said it plans to issue 2.9 billion new shares in the proportion of new share for every one share held for a consideration of Rs.2.30 per share.

Amana Bank share was last traded at Rs.2.60.
The current stated capital of the lender is Rs.11.6 billion.
Amana Bank said the money raised via the rights issue will be utilised to increase the Tier 1 equity capital and facilitate minimum capital requirement for licensed banks.

The moneys will also be used to strengthen the capital adequacy ratio of the bank to support planned business growth.
The rights issue is subject to Colombo Stock Exchange’s in-principle approval and shareholder approval.
Jeddah-based IsDB Group being the principal shareholder of Amana Bank has 29.97 percent shareholding.