Silkbank board approves right share issue
Friday, December 04, 2009
By our correspondent
KARACHI: The Silkbank board of directors has approved injection of the fresh capital into the bank through a right share issue at a discount of Rs7 a share to meet the minimum paid-up capital requirement of the State Bank of Pakistan (SBP).
The bank announced on Thursday that the capital would increase to Rs7 billion after the issuance of 2.8 billion right shares at Rs2.5 per share. Right issue means sale of shares to existing shareholders. Under the proposal, 3.11 shares will be issued for every one share held.
“This issuance will exceed the SBP’s minimum capital requirement of Rs6 billion. The decision will ensure that the bank is adequately capitalised until the end of 2010,” it said. The bank aims to introduce a number of innovative products and services, it said.
Key sponsors of Silkbank are Nomura Investments, Bank Muscat and IFC (a World Bank arm). As of September 30, 2009, the capital of the bank had dropped to just Rs3.3bn after deducting accumulated losses.
by shoaib ahmed
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