RIYADH: The Saudi Hollandi Bank has planned to increase its capital up to 20 percent to 5.72 billion riyals ($1.52 billion) from 4.76 billion riyals to support business activities and growth.
The plan to increase capital to 5.72 billion riyals ($1.52 billion) from 4.76 billion riyals by issuing one bonus share for every five held, paid for by capitalising 952 million riyals of retained earnings, a bourse statement said late on Wednesday.
The move will be voted on by shareholders at a meeting on Mar. 17, the statement added.
No money is being raised from shareholders, who are getting the new shares for free, but the move is an accounting device which in effect boosts the bank’s equity and therefore supports future lending.
