Saudi Arabian lender, Al Rajhi Bank’s board has recommended a 60% increase in capital from $6.66bn (SAR25bn) to $10.66bn (SAR40bn).

The capital increase will be carried out by offering three bonus shares for every five shares owned by eligible shareholders.

The eligibility criteria includes owning shares by the end of the trading day of the bank’s extraordinary general assembly meeting date, which will be announced soon.

Al Rajhi’s planned capital increase will be carried out through capitalisation of SAR15bn from the retained earnings.

Al Rajhi Bank board of directors chairman Abdullah bin Suleiman Al Rajhi stated that the decision “will support the bank’s capital position and financial solvency which will help in executing and delivering the bank’s strategic goals and continuing to grow its financing and investment portfolios to support the national economy and the Kingdom’s Vision 2030 goals through providing financial solutions to its customers from retail, corporate and SMEs as well as participating in capital market activities.”

Established in 1957, the Sharia-compliant banking group has nearly $155bn in assets and operates a network of over 526 branches in Saudi Arabia.

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By GlobalData

Earlier this month, Al Rajhi Bank formed a partnership with Zain KSA to upgrade and expand its communication services and connectivity of its systems.

Last month, the Saudi Arabian regulators approved the acquisition of Ejada Systems Company by Al Rajhi Bank, which was aimed at bolstering the latter’s digital banking capabilities.