Central Bank of Kenya
Dubai Islamic Bank
First Community Bank
Gulf African Bank
Moody’s of US

Dubai lender gets positive rating

Leading Gulf lender Dubai Islamic Bank (DIB), which launched Kenyan operations last year, has gotten a favourable rating from Moody’s of US after a successful cash call last month.

DIB raised Sh139.99 billion (AED5.1 billion) in a rights issue, which closed May 30, helping increase shareholders’ equity to Sh856.44 billion (AED31.2 billion) from Sh716.45 billion (AED26.1 billion) in March.

Shareholders equity is a metric used to measure the health of a firm by subtracting total assets from liabilities.

The UAE’s largest Islamic bank announced Sunday its offering was over-subscribed 2.7 times, with a half of the interest coming from foreign institutional investors.

“The capital increase is credit positive for DIB because it replenishes reserves and enhances loss-absorption buffers of the bank after high growth during 2013-17 and will improve its liquidity,” Moody’s said in a global credit outlook update last Thursday.

DIB in April 2017 got approval from the Central Bank of Kenya to operate a local subsidiary, DIB Kenya, becoming the third full-fledged Islamic bank in the country after Gulf African Bank in 2007 and First Community Bank in 2008.

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