Al Rajhi Bank gets CMA nod for 60% capital raise to $11bn

RIYADH: Al Rajhi Bank, which is Saudi Arabia’s largest valued bank, was approved by the Capital Market Authority for a capital hike to SR40 billion ($11 billion).

The bank is seeking to increase its capital by 60 percent from SR25 billion to support its operations, which it said will “contribute to good growth ratios in the upcoming years,” the CMA reported.

Shareholders will be granted SR15 billion worth of bonus shares, through issuing three bonus shares for every five existing shares.

Founded in 1957, Al Rajhi Bank is considered one of the world's largest Islamic banks by capital value.