Kuwait Finance House KFH Chairman Muhammad Ali Al-Khudairy said: The subscription process in the capital increase of 20% approved by the Extraordinary General Assembly on April 24th 2013 by a value of 500 fils per share (100 fils par value and 400 fils premium) totaling KD 319 million, has gone smoothly where it exceeded `Allah be praised` the subscribed amount of the proposed quantity of shares.
Al-Khudairy added that according to what is planned and as agreed with the subscription agent of Kuwait Clearing Company, which works hard to complete the allocation process, it is expected to complete the process of returning the surplus funds to shareholders who have subscribed more than the prescribed percentage for them during the two weeks of date of subscription completion.
Al- Khudairy valued shareholders’ confidence in KFH through the large turnout witnessed in subscription process, pointing out that such confidence confirms the bank’s pioneering in Islamic financial services industry locally and overseas as it enjoys 35-year experience in various economic sectors, especially those which have directly related to the productive economy based on earth reconstruction approach.
Moreover, he said “the increase in capital will be used to meet the high demand for products and services in the Islamic financial industry locally and overseas, especially that the state is going to proceed implementation of the development plan, in which the private sector will have a vital role in funding in addition to expansion plans in various markets.
Furthermore, he elucidated that KFH is on the verge of further plans for expansion and development in various activities according to the vision based on restructuring, which focuses on creating new competitive environment in order to ensure further strengthening of the means and programs to develop mechanisms and action that retain its position locally and internationally.
He explained that that KFH has followed a systematic approach for capital management plan to cover the current and future needs based on the results of the capital adequacy internal assessment, stress tests as well as regulatory requirements.
He went on to say that capital increase will enable the bank to increase its focus on the domestic market in order to achieve growth in market share by intensifying its spread through new branches in different areas in addition to deploying competitive products and services. He also mentioned that liquidity resulting from capital increase will be employed according to the new vision, taking into account the development in the countries that witness investments.
Al-Khudairy said that KFH is achieving strong performance, growth of revenues, in addition to asset quality improvement after restructuring, stressing the continued efforts of the bank to strengthen the financial position and maintain the growth rate and balanced performance of all activities and work.
He noted that the most important steps taken in the last period, establishing KFH Real Estate Company, which is one of the investment strategic execution outcomes. He added that the company will be the investment arm of KFH in the field of real estate investment at the local, regional and international levels. He expressed his confidence that company will take part in holding important work of KFH in all areas of real estate investing, maximizing the value of these investments and developing its integrated perspective and specialized expertise.