Subscription to BBK Capital Securities offering tops 86%

Manama: BBK, a leading Bahrain-based retail bank, announced yesterday the subscription results and allotment basis of its BD 100 million (US$ 265.3m) perpetual tier1 convertible capital securities offering on a rights privileged basis to shareholders, for which Securities & Investment Company (SICO) is the lead manager.

The subscribed capital securities totalled BD 86,098m, which represents 86.1 per cent of the total subscription offering.

Accordingly, subscribed capital securities will be allotted to the corresponding subscribers in full.

Commenting on the result, BBK Chief Executive, Reyadh Yousif Sater, said, ”We would like to thank the shareholders for their positive response to this offering, which surpassed our minimum threshold of BD60 m by a significant margin. We would view the result as a vote of confidence in the Bank’s on-going development; and we remain highly appreciative of the continued support of our shareholders, who number over 2,000 institutions and individuals.”

“In addition to the direct impact of such capital issuance on the enhancement of bank’s regulatory capital base and capital adequacy buffers, the increase in capital will be used to fund the Bank’s ambitious strategy of future expansion and diversification,” Sater added.

He further stated, “Now that the BBK shareholders have exercised their pre-emptive rights to this offering, the Bank may consider alternative offering avenues for the outstanding amount, as detailed in the offering prospectus, and subject to the prior approval of the CBB.”

Chief Executive of SICO Najla M. Al Shirawi, said, “This is the first-ever BHD-denominated tier 1 perpetual securities issuance, which incorporates unique features including a conversion to equity option, no contractual write-down, and tradability on the Bahrain Bourse. “

“This capital securities issuance provides another example of the innovative corporate finance solutions provided by SICO. In Coordination with BBK, we are currently finalising formalities with the Bahrain Bourse (BHB) for the listing of these capital securities, for which trading is scheduled to commence on the BHB on May 3,” Al Shirawi explained.

Allotment notices will be available for collection by subscribers from Monday, May 2 at the Bahrain Bourse, located at Bahrain Financial Harbour, Harbour Mall (4th floor), or from their designated brokers.