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Ahli United Bank to convert shares.

Ahli United Bank will convert IFC Capitalization Fund Mandatorily Convertible Preference Shares (MCPS) into Common Shares at 74.83 US Cents per Share

In April 2011, International Finance Corporation Capitalization Fund (IFC Fund) had invested $125 million in new equity in Ahli United Bank B.S.C through subscription of Mandatorily Convertible Preference Shares (MCPS) to support the expansion plans of AUB, said a press release. At the option of the IFC Fund, MCPS were convertible into AUB common shares no later than 20 April 2015.

"Given AUB's solid financial and operational performance, the IFC Fund has accelerated the conversion of the MCPS into AUB common shares," it said. "The MCPS will be converted into AUB common shares at an effective conversion price of ard 74.83 US Cents per share, translating into 167,045,454 AUB common shares. Post conversion, the IFC Fund will have a 2.95 per cent shareholding in AUB."

Fahad Al Rajan, AUB Chairman stated that, "IFC Fund's decision to exercise the conversion option prior to the mandatory conversion date is a strong vote of confidence in the solid fundamentals of AUB and its regional business strategy."

The IFC Capitalization Fund is a global equity and subordinated debt fund founded by the International Finance Corporation, a member of the World Bank Group, and the Japan Bank for International Cooperation. It aims to support banks considered vital to the financial system of emerging market countries. The $3 billion fund is invested in banks of strategic importance in their countries.

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Publication:CPI Financial
Date:Sep 29, 2013
Words:267
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