TAIB Bank plans to convert into a private bank focused on serving high-net-worth individuals, families and institutional clients, stated a press release.
The newly repositioned TAIB will additionally benefit from an increase in authorized capital from $125 million to $200 million agreed upon at an Extraordinary General Meeting of shareholders held recently in Bahrain.
The Bahrain Monetary Agency (BMA) has approved TAIB's plans to become a private bank and increase capital. TAIB will primarily serve clients with investment holdings of between three and $15 million.
Originally created twenty-five years ago as the first investment bank in Bahrain, TAIB is headquartered in Manama and has a long history of bringing real estate, private equity, and syndicated loans to local investors.
According to TAIB CEO Iqbal G. Mamdani, the bank would raise additional capital through two rights issues. “The first rights issue is for $55 million in the current year, and the second is for $30 million in early 2004.”
The first rights issue will occur at the end of November, 2003 when existing shareholders of the Bank will be offered new shares in the ratio of one new rights share for every 1.75 existing shares of the Bank that shareholders own.
The actual price at which these shares will be offered will be determined by the Board of Directors in consultation with independent external consultants. In both issues, any unsubscribed rights shares will be offered to strategic investors at the discretion of the Board of Directors, at a price no lower than that at which the shares are offered to shareholders of the Bank.
Mamdani explained that as a private bank, TAIB will focus on helping wealthy clients and institutions to protect, enlarge and transfer their wealth. In addition to focusing on high net worth clients, TAIB is also enlarging its institutional business.
The bank is building alliances with other financial institutions in the Middle East so that those institutions can offer TAIB's products to their own clients in their own names. TAIB will also continue to package real estate investments in the US and Europe as well as private equity deals in the regions in which it operates. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
