KARACHI, Oct 27: NIB Bank has decided to increase its paid-up capital up to Rs40 billion by issuing right shares that will make it top bank in terms of paid-up capital in the country.

The bank announced on Monday that it intended to use the incremental capital from the rights issue to support the growth of its business.

NIB Bank has announced a rights issue of Rs12 billion which would be offered to all existing shareholders in the ratio of 42.198 right shares for every 100 shares held as at the close of business on November 19, 2008, and would be issued at par, i.e. at a subscription price of Rs10 per share.

The rights issue was approved by the board of directors of NIB Bank in its meeting held on Friday (Oct 24) which will increase its paid-up capital to over Rs40 billion.

A statement issued by the bank said the NIB was owned 63.15pc by Fullerton Financial Holdings, which has consented to subscribe to its share of the rights issue.

Fullerton Financial Holdings has further agreed, subject to all required consents of the regulatory authorities in Pakistan being granted, to subscribe to, or procure the subscription of, any portion of the rights issue unsubscribed by other shareholders.

Fullerton is a 100 per cent subsidiary of Temasek Holdings of Singapore, an investment company with global investments of $134 billion in diverse companies in financial services, real estate, transportation and logistics, telecommunications, media, health care, education and technology.

For the purposes of determining entitlements to right shares, the Register of Members and the Share Transfer Registers of NIB Bank will be closed from Nov 20, 2008 to Nov 24, 2008 (both days inclusive).