Al Amanah Islamic Bank undertakes rights offering

Al Amanah Islamic Investment Bank of the Philippines (Islamic Bank) is undertaking its pre-emptive rights offering at P120 per share.

After the rights offering, which started from March 1 and will end March 29, the bank will proceed with the public offering of the shares that have not been subscribed by its existing shareholders.

The Asset Privatization Trust (APT), the bank's designated disposition entity, has a 0.45-percent stake in the bank.

All the government financial institutions (GFIs) that have shares in the bank, except the APT, have indicated keen interest in maintaining their shares of stock in Islamic Bank, although the GFIs have decided not to subscribe to the pre-emptive rights offering that would eventually dilute their shareholdings in the bank.

In accordance with its mandate, APT plans to divest its shares in the Islamic Bank during the public offering.

Under the law creating Islamic Bank, the GFIs should stay in the bank as shareholders. The GFIs should also oversee the rehabilitation of the bank once it is privatized sometime in May this year.

APT chief executive trustee Renato Valdecantos, in an earlier interview with The STAR, said that there is a need for Islamic Bank to raise its capital stock to P1 billion.

Valdecantos said of the authorized capital stock of P1 billion, about P50 million was subscribed and paid up.

A number of investors, both foreign and local, have expressed interest in buying the bank. Most of the foreign investors, he said, are from Muslim countries such as Saudi Arabia, Malaysia and Indonesia.

The fresh capital will support the bank's rehabilitation program that would entail upgrading of the facilities, embarking on a computerization program and hiring of new personnel.