Ahli United plans IFC Fund share conversion
Manama, September 30, 2013
Bahrain-based Ahli United Bank (AUB) has announced that it will convert International Finance Corporation Capitalisation Fund's (IFC Fund) mandatorily convertible preference shares (MCPS) to common shares at 74.83 cents per share.
In April 2011, the fund had invested $125 million in new equity in AUB through subscription of MCPS to support the bank's expansion plans.
At the option of the IFC Fund, MCPS were convertible into AUB common shares no later than April 20, 2015.
Given AUB's solid financial and operational performance, the IFC Fund has accelerated the conversion of the MCPS into AUB common shares.
The MCPS will be converted to AUB common shares at an effective conversion price of 74.83 cents per share, translating into 167,045,454 AUB common shares.
Post-conversion, the IFC Fund will have 2.95 per cent shareholding in AUB.
"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," AUB chairman Fahad Al Rajan said.
The fund is a global equity and subordinated debt fund founded by the IFC, a member of the World Bank Group, and the Japan Bank for International Co-operation.
It aims to support banks considered vital to the financial system of emerging market countries.-Reuters
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