(MENAFN- Bahrain Tribune) Regional consumer finance player, Bahrain Commercial Facilities Company (BCFC), said yesterday its recent rights issue to raise BD25 million was fully subscribed.
Shareholders applied for the full issue of 42,350,000 newly issued ordinary shares, which increased the total issued and paid up share capital of the company to 163,350,000 ordinary shares.
BCFC runs Bahrain Credit, the leading credit and finance company in Bahrain, in addition to the National Motor Company, Tas'heelat Insurance Services and Tas'heelat Real Estate Services Company.
"This is an important stage in the strategic development of our business. With the additional capital raised through the rights issue, we will be able to invest across our operations to ensure the delivery of outstanding customer products and services as well as value for shareholders," said its Chairman, Abdulrahman Yusuf Fakhro.
BCFC delivered 24 per cent return on equity with earnings per share of 84 fils and dividend ratio of 40 per cent in 2007.
"The proceeds from the rights issue will be invested in strengthening our consumer finance business with additional funding and reducing our company's leverage to improve net earnings," said Adel Hubail, Senior Vice President and Head of Consumer Finance, BCFC.
Senior Business Reporter
The company also plans to use the capital in creating additional capacity for its growing automotive business, National Motor Company.
"We are also looking at new products and business lines across our entire operations based on customer demand."
"This is an exciting period for the business as we move to consolidate our leading position in the vehicle financing market and build upon our growing positions in the insurance and real estate markets," he added.
The Kingdom-based investment bank, Securities and Investment Company was the lead Manager to the rights issue while Hatim S. Zu'bi & Partners were legal advisors and BBK the receiving bank.
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