Saudi Re has announced that it has received regulatory approval for its plans to increase its capital by 50% through a rights issue.
The company, which is the first reinsurance company established in Saudi Arabia, plans to increase its capital from SAR 891 million (approx. USD 238m) to SAR 1.336 billion (approx. USD 356m).
This works out to an increase in capital of SAR 445.5 million (USD 119m), as recommended by the Board.
Plans for the capital raise were first revealed last month, but can move ahead now that Saudi Re has got the green light from the Saudi Central Bank.
A bourse filing shows that approval was granted to Saudi Re on May 25th.
It’s understood that the reason for the increase in capital is to strengthen Saudi Re’s capital base and support its future expansion plans.
