Barwa Bank plans QR2bn capital increase amid Qatar infrastructure boom

Barwa Bank is increasing its capital by more than QR2bn as part of efforts to better position itself to partake in the mammoth infrastructure projects domestically and in view of the expected overseas expansion.

The bank, which reported 41% jump in net income to QR345mn in 2012, is offering 50mn shares at QR20 a piece through a rights issue as well as through an initial public offering (IPO) of 50mn shares at QR21 a share.

These were decided at the bank’s extra-ordinary general assembly where shareholders accorded their approval for the capital enhancement. The general assembly authorised the board to choose the timing of both transactions, after obtaining approvals from the Qatar Financial Market Authority and the Ministry of Business and Trade. This is the second IPO to be officially announced after Doha Global Investment, whose maiden offer is expected to hit the market next month.

“The capital increase will be used to facilitate further growth in the bank’s asset base and allow it to participate fully in the domestic opportunities presented by the major commitment to infrastructure projects in Qatar as well as positioning the bank for overseas expansion in due course,” a Barwa Bank spokesman said after the meeting.

Barwa Bank’s total assets registered a growth of 32% to QR25.30bn with financing portfolio surging 66% to QR15.30bn in 2012.

The additional capital would also help the bank meet the regulatory requirements complying with the Basel III capital adequacy regime.

The general assembly also elected new board with Sheikh Mohamed bin Hamad bin Jassim al-Thani as its chairman.