iBank ready for first shares auction in March
THE ISLAMIC Bank of Thailand (iBank) is ready to hold its first shares auction next month to draw new stakeholders, especially |foreign institutions and foreign funds that have shown interest|in the available 74.5-per-cent |stake.
The state will be required to hold at least 25.5 per cent as specified by the State Enterprise Policy Office, down from nearly 90 per cent currently.
iBank expects to secure new stakeholders by midyear.
The State Enterprise Policy Commission has approved the iBank restructuring plan of late 2015, which will see the bank |seeking strategic partners and transferring Bt40 billion worth of bad debts to the Asset Management Corporation to be set up by the Finance Ministry.
iBank chairman Chaiwat Uthaiwan said next month’s shares auction would allow interested investors to propose bids and their preferred shareholding ratio.
The new stakeholders will assume management duties in the third quarter of this year. By year-end, iBank will commence service operations for Muslims and general clients domestically and overseas.
iBank expects to regain solid financial status by 2018.
The new stakeholders will have to inject capital into iBank to raise its Bank for International Settlements (BIS) ratio to at least 8.5 per cent from the current minus-21.1 per cent. The amount of capital injection by the new stakeholders will depend on their shareholding ratio and agreed share price, Chaiwat said.
The state, which currently has an 88-per-cent stake, comprising 48.5 per cent by the Finance Ministry and 39.8 per cent by Government Savings Bank, will be required to hold at least 25.5 per cent to maintain voting rights.
iBank currently has Bt90 billion in assets, Bt40 billion in bad loans and Bt50 billion in “good” loans, which the bank will retain. iBank’s current accumulated loss is about Bt10 billion.
Meanwhile, iBank subsidiary Amanah Leasing’s operations have improved steadily with potential for growth.
