The Government of Sharjah came to the lender’s rescue in December last year after the Central Bank of the UAE (CBUAE) ordered the Invest Bank to take losses that wiped out its capital base.
Thursday 11, April 2019 BY KUDAKWASHE MUZORIWA
The Shareholders of Invest Bank has approved a proposal allowing the Government of Sharjah to own 50.07 per cent of the lender following AED 1.12 billion strategic investment.
The Government of Sharjah made the AED 1.12 billion investment on a commercial basis and it has also offered to subscribe to a future rights issue.
In a statement, Invest Bank said that the shareholders also approved further increase in share capital for all shareholders of the bank to be underwritten by the Government of Sharjah up to a certain amount.
Additionally, the shareholders approved the reorganisation of the Board of Directors, including the appointment of HE Sheikh Sultan bin Ahmed Al Qasimi as Chairman.
HE Sheikh Sultan Bin Ahmed Al Qasimi, the Chairman of Invest Bank, said, “Over the medium term, we aim to return the bank to profitable growth through a strategy that allows us to improve operating margins and tap into commercially-viable opportunities.”