Al Baraka Bank Syria IPO of US$ 100 Million to be Launched on 4th October 2009
Manama, 3rd October 2009:
The Bahrain based leading Islamic banking group Al Baraka Banking Group B.S.C. announced that the shares of Al Baraka Bank Syria will be offered to Syrian investors in a public subscription (IPO) beginning 4th October until 4th November 2009.
The capital of Al Baraka Bank Syria will be Syrian pounds (SYP) 5 billion (US$ 100 million). Promoters have subscribed to 65% of the capital (6.50 million shares amounting SYP 3.25 billion) of which 50%, amounting to SYP 1.625 billion, has already been paid. The shares that will be offered for public subscription will amount to 3.50 million shares with a value of SYP 1.750 billion representing 35% of the bank's capital. The issue price is SYP 500 per share and the subscribing shareholders will be required, upon subscription, to pay 50% of the nominal value of the share, and the remainder of the subscription amount within a period not exceeding 3 years from the date on which the bank commences its operations.
The IPO will be offered to Syrian investors only because the share of the foreign ownership has already been fully subscribed to by the promoters.
The IPO process will be managed by Banque Bemo Saudi Fransi, Syria International Islamic Bank, Arab Bank (Syria) and the Commercial Bank of Syria.
On this occasion, Mr. Adnan Ahmad Yousif, member of the Board of Directors and President & Chief Executive of Al Baraka Banking Group, said that the launching of Al Baraka Bank Syria with a capital of US$ 100 million reflects our full confidence in our abilities and financial position to proceed with the implementation of the plans that we set early this year in expanding our geographical network through the establishment of new banking units and the opening of more branches for the existing units.
Mr. Adnan Yousif added that Al Baraka Bank Syria, which we hope will begin its operations during this year, will offer all Islamic banking products and services to both individuals and corporate customers through a network of branches that will cover all of the main cities in Syria.
The President & Chief Executive of Al Baraka Banking Group added that the Syrian market was witnessing significant growth because of the continuing economic reforms which resulted in the liberalization of the regulations governing investments by local private sector and foreign investors. He also said that substantial amounts of money were flowing into many infrastructures, industrial, commercial and service sectors and projects and this would create good opportunities to banks and investors which in turn would make the Syrian market an attractive destination for investors including a number of foreign banking institutions.
However, what makes Al Baraka Bank Syria different from other banks is that it is committed to provide services and products that comply fully with the Sharia principles. The Bank will also be strongly supported by the vast banking expertise of the Group as well as its strong financial resources and technical capabilities and the extensive network of subsidiary banking units that it has in 12 countries around the globe with more than 300 branches.
Mr. Adnan Ahmed Yousif said that the incorporation of Al Baraka Bank Syria was part of the implementation of the long-term strategy of Al Baraka Banking Group in terms of expanding its presence in regional, Arab and international markets specially the promising markets which in turn would enhance the strategic plans of the Group and help expand its geographical presence.
Mr. Adnan Ahmed Yousif concluded his statement by extending his thanks to the Central Bank of Bahrain and the regulatory and monetary authorities in the Arab Republic of Syria for the continuing support and facilities that they extended to ABG and to Al Baraka Bank Syria, which again highlights their keen interest in supporting Arab banking institutions and joint Arab banking businesses.
Al Baraka Banking Group is a Bahrain Joint Stock Company listed on Bahrain and NASDAQ Dubai stock exchanges. It is a leading international Islamic bank with Standard & Poor's long and short-term credit ratings of BBB- and A-3 respectively. Al Baraka Banking Group offers retail, corporate and investment banking and treasury services strictly in accordance with the principles of the Islamic Shari'a. The authorised capital of Al Baraka Banking Group is US$1.5 billion, while total equity amounts to about US$1.58 billion. The Group has a wide geographical presence in the form of subsidiary banking Units and representative offices in twelve countries, which in turn provide their services through more than 300 branches. These banking Units are Jordan Islamic Bank, Jordan; Al Baraka Islamic Bank, Bahrain; Al Baraka Islamic Bank, Pakistan; Banque Al Baraka D'Algerie, Algeria; Al Baraka Bank Sudan, Sudan; Al Baraka Bank Limited, South Africa; Al Baraka Bank Lebanon, Lebanon; Bank Et-Tamweel Al-Tunisi Al-Saudi, Tunisia; the Egyptian Saudi Finance Bank, Egypt; Al Baraka Turk Participation Bank, Turkey; Al Baraka Bank Syria (under formation) and a representative office in Indonesia.
For further information, please contact:
Al Baraka Banking Group B.S.C
Corporate Communications Department
Tel: +973-17-541122 â€“ Ext: 227
Email: [email protected]