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.