MANAMA: Ithmaar Bank, which will become a retail Islamic bank instead of an investment bank is one step closer to raising $500 million capital as part of the bank’s strategy to strengthen its capital base, an official at the bank said.

“As part of the bank’s capital-raising exercise, the bank will offer a rights issue and will launch a five-year Mandatory Convertible Sukuk, the Islamic equivalent of a mandatory convertible bond issue,” said Khalid Abdulla-Janahi, chairman Ithmaar Bank. Janahi, who was joined by Mohammed Hussain CEO and board member Ithmaar, said that the bank would tap opportunities in retail Islamic banking around the world.