Solidarity Bahrain, a leading Islamic insurance provider, has announced that it successfully raised BD12 million ($32 million) through the issuance of the kingdom’s first shariah-compliant, non-voting, non-cumulative, perpetual Tier 1 capital preference shares.
A total of 12 million shares were issued at a nominal value of BD1 per share. This innovative issuance offered Solidarity’s shareholders a unique opportunity to invest in a sharia-compliant instrument designed to reinforce the insurer’s capital structure.
The landmark transaction, offered via private placement to accredited shareholders, is aimed at strengthening the company’s Tier 1 capital and supporting its long-term growth strategy, said the statement from Solidarity Bahrain.
Sico, a leading regional asset manager, broker, and investment bank, acted as the lead manager and receiving bank, structuring and executing the offering exclusively for existing accredited shareholders of Solidarity Bahrain.
The offer period commenced on June 30 and closed on July 16 following Solidarity’s Extraordinary General Meeting approval in March and receipt of all required regulatory approvals.
As perpetual securities with no maturity date, the preference shares will serve as a long-term component of Solidarity’s capital base.
CEO Jawad Mohammed said: "This issuance reflects our commitment to innovation and our leadership in Islamic finance. It strengthens our capital foundation and supports our growth plans."
"We are grateful to our shareholders for their trust and to SICO for their instrumental role in ensuring the success of this transaction," he stated.
Group CEO Najla Al Shirawi said: "We are pleased to have partnered with Solidarity Bahrain on this strategic initiative. This transaction reaffirms SICO’s ability to deliver tailored, Sharia-compliant capital market solutions."
A subsidiary of Solidarity Group Holding, the world’s largest sharia-compliant insurance institution, Solidarity Bahrain is one of the kingdom’s leading insurers.-TradeArabia News Service
