Sharjah govt plans to invest about $517 mln in Invest Bank | Reuters:
The Government of Sharjah in the United Arab Emirates will invest up to 1.9 billion dirhams ($517.32 million) in struggling Invest Bank, the lender said on Wednesday, disclosing details of the two-stage investment plan. The Sharjah government stepped in to support Invest Bank, one of the smaller banks in the UAE, after it was hit by recent high levels of bad loans, partly due to its exposure to the troubled real estate and construction market.
The Government of Sharjah will buy 1.59 billion shares of Invest Bank for 1.115 billion dirhams, or 50.07 percent of the total issued share capital of the bank, Invest Bank said.
This is to enable Invest Bank to maintain capital adequacy after booking provisions of 1.266 billion dirhams in the third and fourth quarter financial statements, it said.
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