Bank Muamalat completes RM500m capital-raising exercise

Bank Muamalat Malaysia Bhd announced on Mar 10 that it has completed a capital-raising exercise amounting to RM500 million of Tier-1 capital.
The exercise relates to the issuance of 500 million ordinary shares to its shareholders, DRB-Hicom Bhd (70%) and Khazanah Nasional Bhd (30%), effectively raising the bank's total capital to RM1 billion.
Following the exercise, the bank's risk weighted capital ratio has strengthened to an estimated 18.2% compared to 12.6% as at Dec 31, 2008, the bank said in a statement.
"This has put the bank in a strong capital position with capital ratios above the minimum regulatory requirements," it said.
Bank Muamalat said its core capital ratio has been similarly improved, increasing to an estimated 14.3% from 8.5% in the same period under review.
According to the bank, the exercise will further strengthened its balance sheet at a period where preference has shifted towards Islamic financial institutions.
"Bank Muamalat's enhanced capital position will provide the bank with a competitive advantage to strengthen existing relationships, seek out new markets and selectively expand the business," it said. — Bernama