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First Gulf to convert Dh3.6b bonds to shares

Bank's capital will increase to Dh1.5b

Gulf News

Abu Dhabi: First Gulf Bank announced yesterday that it will convert Dh3.6 billion mandatory convertible bonds into 125 million new ordinary shares. These bonds will be converted at the initial subscription price of Dh28.8 per share and the new shares will be listed on Abu Dhabi Securities Exchange from today.

Business growth

As a result, FGB's share capital will be increased to Dh1.5 billion from Dh1.375 billion. The three-year convertible bonds were issued in July 2008 to mainly fund the bank's corporate and retail growth.

"We are pleased to announce the early conversion of our convertible bonds," said Andre Sayegh, CEO, First Gulf Bank. "This decision reflects positively on the bank's financial performance and strong liquidity position. The board of directors and the management are confident of the bank's rising profitability.

"We are confident that as common shareholders, the bondholders will benefit from their investment in the bank's future growth over the years to come."