Published: January 9, 2012
SABB and Saudi Hollandi Bank’s plans approved by regulator.
Saudi British Bank (SABB) is to increase its capital by SAR2.5bn (US$666mn) after Saudi Arabia’s financial regulator approved its plans.
The bank, which is part of HSBC, will increase its capital to US$2.67bn through issuing a bonus share for every three shares held by its registered shareholders.
As a result of the intended increase, its number of shares will increase to 1bn from 750mn.
The regulator has also approved Saudi Hollandi Bank’s plans to increase its capital to SAR3.97bn, up from SAR3.31bn.
The bank will distribute an extra share for every five shares held by its shareholders.
These increases are to be completed in the next six months.
Other banks planning a similar move include Banque Saudi Fransi, which recently unveiled plans to increase its capital by 25% and is currently seeking regulatory and shareholder approval.