The board of Saudi Arabia’s Samba Financial Group has proposed on January 27 to the extraordinary general meeting an increase in the group’s capital from SAR 12 billion to SAR 20 billion.

The capital increase will be effected through bonus share distribution at 66.66%, or 2-for-3; thus raising the total number of shares to 2 billion from 1.2 billion.

The capital raise will be carried out through capitalizing SAR 8 billion from retained earnings.

The Saudi-based financial group seeks to cope with steady growth in the national economy and continued expansion in the Kingdom’s infrastructure.

It also seeks to bolster its capital base to fulfill the rising credit demands from clients.

Photo Credit: Arabianeye-Reuters