Solidarity Bahrain, a leading Islamic insurance provider, has successfully raised BHD12m ($31.8m) through the issuance of Bahrain's first Shariah-compliant, non-voting, non-cumulative, perpetual Tier 1 capital preference shares.
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 SICO Bank in a statement. SICO acted as lead manager and receiving bank, structuring and executing the offering.
This innovative issuance offered Solidarity’s shareholders a unique opportunity to invest in a Shariah-compliant instrument designed to reinforce the insurer’s capital structure. As perpetual securities with no maturity date, the preference shares will serve as a long-term component of Solidarity’s capital base.
Mr Jawad Mohammed, CEO of Solidarity Bahrain, said, “This issuance reflects our commitment to innovation and our leadership in Islamic finance. It strengthens our capital foundation and supports our growth plans.”
Solidarity Bahrain is a subsidiary of Solidarity Group Holding, which is the world’s largest Shariah-compliant insurance institution.