Dubai Islamic Bank Seeks Nod To Raise Ceiling For Tier 1 Capital by $750 Mln

DUBAI, Feb 8 (Reuters) – Dubai Islamic Bank ( DIB ) said on Monday it was seeking shareholder approval to issue up to $750 million in sharia-compliant capital boosting bonds.

This would potentially raise its tier 1, or core capital, to $2.75 billion, the bank said in a statement to the bourse.

United Arab Emirates’ largest sharia-compliant lender has also sought shareholders approval for the board to be able to isssue a sukuk and/or other convertible shares if required.

Last month, DIB said it would need capital in 2016 but has still to decide on which method it will use to raise it.

DIB has also sought approval from shareholders to allow it to increase its paid up capital by 988.4 million dirhams ($269.11 million), subject to regulatory and other approvals.