Published: March 7, 2011
Loss-making lender delays $140mn fundraising until the summer.
Loss-making Bahrain Islamic Bank (BIB) has postponed a rights issue expected to raise some BHD54mn (US$143mn), as the country continues to experience tension following political upheaval across the Middle East and North Africa.
The management team issued a statement via the Bahrain Course, claiming the delay was due to “market conditions that are beyond the bank’s control”. The bank had had been due to complete the fund raising by March 23. It now says the rights issue will take place before July.
BIB confirmed in early February that its shareholders had approved the capital increase. Last year the bank made a loss of BHD39.7mn (US$105mn), compared to a loss of BHD19.4mn in 2009.