CBI, Commercial Bank International to raise capital to AED 1 billion by 2007

CBI, Commercial Bank International announced the accomplishment of its capital increase from AED 478 million to AED 1 billion, the difference being affected in three trenches and aimed at bolstering its aggressive growth and 5-year plan. The bank is poised to enter the retail banking market in a strong and aggressive manner. It has a range of products and services in the pipeline to sustain its remarkable progress in the competitive sector as well as strengthen its clientele. The capital increase is therefore aligned to the growth strategy of the bank and parallel to the market growth. The Bank is gearing up to boost its financial capital strength to AED 1 billion by the fiscal year ending March 2007, from its present AED 478 million in order to achieve an increase worth of AED 522 million. This capital increase closely follows the unveiling of CBI’s new corporate identity and is in line with the new strategy it is implementing with respect to its retail banking and 5-year plan for growth. CBI declared stock dividends of 60% to its shareholders in 2005, which raised the capital from AED 299 million to 479 million. This 60% dividend is considered to be one of the best in the market. The first tranch has already been achieved AED 271 million in September 17 this year. The second tranch of AED 125.5 million, will take place on December 17 while third tranch of AED 125.5 million, will take place on March 18 2007. CBI successfully received AED 266 million from the first transh, and also received AED 251 million for the second and the third trenches by post-date cheques, hence achieving a total of AED 517 million leaving AED 4.1 million to be subscribed from the excess amount paid by the shareholders totalling to 487.8 million. The allocation was done without any premium, with a distribution limit for the non-underwritten shares at the rate of 0.8649%.The subscription closed on September 28 2006, and allocation was done within 10 days, while refunds of the excess amount were paid between October 9 & 12 2006. CBI’s capital increase plans come at a time when the bank is preparing to expand in a major way in the country including setting up branches in strategic locations with ATM machines, Internet banking support, phone banking and investments. In keeping with its new motto ‘You asked. We answered’, CBI’s capital increase is also seeing as an answer to large corporations in the country that are looking towards the bank to boost their businesses. CBI is making a concerted effort to be identified as an organisation that understands what people need and become the bank with all the answers.