Banque Saudi Fransi said it would raise its capital 28.5 per cent to SR7.23 billion ($1.93 billion), shelving a plan to raise capital to SR9 billion through rights and bonus issues.

Fransi, in which France's Credit Agricole is a main shareholder, said on July 6 that it plans to raise its capital by 60 per cent through rights and bonus share issues to SR9 billion from SR5.63 billion.

The board proposed to offer shareholders a 1 riyal dividend for 2008 and issue two bonus shares for every seven, it said in a statement posted on the bourse website.

"The board reaffirmed its intention to raise the capital to SR9 billion at the opportune time," it added.

France's Credit Agricole indirectly holds a 31 per cent stake in Fransi through its investment banking unit Calyon.-Reuters