Amana Bank’s capital crosses LKR 20 Billion through Successful Rights Issue 

  • LKR 6 Billion raised, despite challenging environment
  • Features strong Foreign, Corporate & HNW participation

Amana Bank has announced to the Colombo Stock Exchange that it has concluded the Rights Issue after raising LKR 6 Billion and successfully achieving its objectives by meeting the enhanced minimum capital requirement in line with latest regulatory directions to the banking industry. The Rights Issue saw existing shareholders and new investors featuring strong Foreign, Corporate & HNW participation.

The Rights Issue led to an inflow of Foreign Investments amounting to approximately USD 5 Million, thereby taking the total investment of the Principal Shareholder, AAA rated IsDB Group, in excess of USD 25 Million, thus demonstrating their continued confidence in Amana Bank and Sri Lanka despite the challenging circumstances. The Bank has previously been recognised by the Central Bank with the Global Commerce Excellence Award for bringing in foreign investments during the most challenging times of the Country.

Having commenced acquiring Amana Bank shares since 2021, Senthilverl Holdings, a reputed entity of diversified interests, through its strong participation in the Rights Issue has consolidated its position as the 2nd largest shareholder of Amana Bank.

Navigating through a multitude of external challenges, Amana Bank has demonstrated robust resilience over the last few years, resulting in continuous upward performance. Owing to this positive performance trend, Amana Bank has declared six successive annual dividends, demonstrating the Bank’s commitment to deliver value to its shareholders. The Bank recorded its best ever annual PBT in 2022, which has been exceeded already within the first nine months of 2023, where the Bank expects the trend to continue.

The continued acceptance of its people friendly banking model resulted in Amana Bank being one of the fastest Banks to surpass the Rs 100 Billion mark in total assets in 2020, which now, along with the Rights Issue proceeds, stands in excess of Rs 150 Billion. Moreover, affirming its leadership position in the non-interest based alternative banking industry, Amana Bank continued to be recognized amongst the Top 100 Strongest Islamic Banks in the World by The Asian Banker.

Further testifying its growing popularity and strong brand acceptance, Amana Bank climbed an impressive 14 positions, from 81st to 67th, in the latest ranking index of LMD Brand Finance Top 100 Most Valuable Brands in Sri Lanka, while being one of the few brands to record a positive growth in their brand value.

Expressing his gratitude for the overwhelming response, Amana Bank's Chairman Asgi Akbarally stated "We are profoundly grateful for the support demonstrated by our valued shareholders towards raising LKR 6 Billion through the Rights Issue, especially in the context of challenging economic circumstances. Their trust and confidence in our vision have contributed significantly to meet the regulatory minimum capital and fortify our capital adequacy levels. With this success, Amana Bank is well poised for the next phase of its growth, while continuing to reward its valued shareholders.”

Echoing these sentiments Amana Bank's Managing Director/CEO Mohamed Azmeer said "Successfully undertaking a Rights Issue during a challenging market environment is a testament to the unwavering trust and support of our existing shareholders, while also demonstrating the confidence of new investors on our unique model and performance. The fresh capital infusion has placed us on a stable launch pad for future growth, allowing us to expand our core business while capitalizing on promising opportunities to ensure optimal shareholder value in gratitude for their investment. I also take this opportunity, to thank the regulators for their support, guidance and timely engagement which enabled the Bank to successfully meet the objectives of the Rights Issue”

About Amana Bank

Amãna Bank PLC is a stand-alone institution licensed by the Central Bank of Sri Lanka and listed on the Colombo Stock Exchange with Jeddah-based IsDB Group being the principal shareholder. The IsDB Group is a USD ‘AAA’ rated multilateral development financial institution with a membership of 57 countries. Fitch Ratings in October 2023, affirmed Amãna Bank’s National Long Term Rating of BB+(lka) while assigning a stable outlook.

Amãna Bank does not have any subsidiaries, associates, or affiliated institutions apart from its engagement as the Founding Sponsor of OrphanCare, which is an independent trust addressing the needs of orphan children once they reach the age of 18 and are compelled to leave their care homes. Guided by Article 2 of the United Nations Convention on the Rights of the Child which ensures non-discrimination, OrphanCare is administered by a team of trustees who have a track record of passionate social service.