Doha Bank seeks to issue new shares to QIA

Dubai: Doha Bank said on Sunday it would seek shareholder approval to raise its capital by up to 20 per cent and give that stake to the Gulf state's sovereign wealth fund, the Qatar Investment Authority (QIA).

Shareholders would meet on December 21 to discuss the plan, which would involve issuing up to 34.45 million new shares to the QIA at the bank's closing share price on October 12, Doha Bank said in a statement on the bourse website.

The increase would happen in two phases, it added.

Other Qatari banks, including Commercial Bank of Qatar and Qatar International Islamic Bank , have sold stakes to the sovereign wealth fund.

In October, the QIA launched a $5.3 billion plan to buy shares of listed banks to shore up investor confidence in banks, amid the global financial crisis