The Islamic Bank of Asia completes second and final closing
Issued capital now USD 500 million with DBS retaining majority stake
SINGAPORE, 13 September 2007 - The Islamic Bank of Asia (IB Asia) announced today that it has completed its second and final closing, bringing its paid-up capital to
USD 500 million.
DBS will retain its majority stake in IB Asia at 50 per cent plus one share.
IB Asia was incorporated on 7 May as a DBS subsidiary. At that time, DBS Bank contributed USD 250 million out of the first capital injection of USD 418 million for an initial stake of 60 per cent. With IB Asia's second closing, another 12 investors have joined the current 22 Gulf Cooperation Council (GCC) investors. All of them come from prominent families and industrial groups based in the GCC countries.
IB Asia CEO Vince Cook said the second closing is an important milestone for the bank in establishing itself: "The Islamic Banking market is still in a very early stage of development. Yet it is growing at an exceptional rate, and on our part, we are seeing many initiatives in the Asian region for the taking. It is therefore very exciting for IB Asia to be at the forefront of such a nascent industry, where we are carving out a niche for ourselves through our unique shareholding structure, which gives us access to the GCC network and DBS' banking expertise in Asia.
"Singapore has a well established position in the wholesale banking space, and we are now equipped to leverage this as a significant Islamic player that excels in cross-border, large-ticket capital market and investment banking activities," he added.
Mr. Cook added that IB Asia's recruitment experience has also been positive. IB Asia has doubled the manpower it had at the time of its launch and is on track to meeting its targeted 50-60 hires by year-end. "We have been pleasantly surprised by the strong interest registered by professionals in neighbouring countries who are keen to join us, as well as Singaporeans working in the region who are eager to contribute to the development of the Islamic financial market in their home country. Likewise, we are attracting talent from the Middle East.
"As our own business develops, and Singapore continues to build on recent efforts to train a cadre of Shariah scholars and Islamic banking professionals, the whole area of Islamic finance in Singapore looks set to flourish."
About The Islamic Bank of Asia
Incorporated in May 2007 with DBS Bank and prominent investors from the Gulf Cooperation Council (GCC) countries as shareholders, The Islamic Bank of Asia (IB Asia) combines banking expertise and insights of Asia with strong Islamic banking credentials to tap into opportunities within Asia and the Middle East. Headquartered in Singapore, IB Asia focuses on commercial banking, corporate finance, capital market and private banking services. To find out more about IB Asia, log on to www.islamicbankasia.com.
Headquartered in Singapore, DBS is one of the largest financial services groups in Asia with operations in 15 markets. The largest bank in Singapore as measured by assets, and a leading bank in Hong Kong, DBS' "AA-" and "Aa1" credit ratings are among the highest in the Asia-Pacific region. DBS has leading positions in corporate, SME and consumer banking, treasury and markets, wealth management, securities brokerage, equity and debt fund raising. Beyond the anchor markets of Singapore and Hong Kong, DBS serves corporate, institutional and retail customers through its operations in China, India, Indonesia, Malaysia, Thailand and The Philippines. More information about DBS Group Holdings and DBS Bank can be obtained from our website www.dbs.com.