BBK, a leading Bahrain-based retail bank, announced today the subscription results and allotment basis of its BD 100 million (US$ 265.3mn) 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 BHD 86,098 million, 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, Mr. Reyadh Yousif Sater, said: ”We would like to thank the Bank shareholders for their positive response to this offering, which surpassed our minimum threshold of BD 60 million 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 more than 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. With the increasing capital requirements by the Basel Committee, banks would need to find innovative ways to invest its capital in a way that will minimize the capital charges and maximize the return to its shareholders, at the same time. Our strategy for the coming period is structured towards achieving that objective.  Our solid financial base and clearly-defined strategy will provide the Bank with the strength and agility to face the challenges of an increasingly volatile economic and market environment with growing confidence and optimism.” Mr Sater added.
“The Bank’s reported capital adequacy ratio as of 31st December 2015  was 14.87 per cent, will be significantly boosted from this additional tier 1 capital issuance, in line with Central Bank of Bahrain (CBB) and Basel III requirements. 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.

Ms. Najla M. Al Shirawi, Chief Executive of SICO, said: “As lead manager for the offering, we would like to congratulate BBK on the results of this landmark issuance, which we regard as highly encouraging given the current challenging market conditions. 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 3 May 2016,” Ms. Al Shirawi explained.

Allotment notices will be available for collection by subscribers from Monday 2 May 2016 at the Bahrain Bourse, located at Bahrain Financial Harbour, Harbour Mall (4th floor), or from their designated brokers.​