Dubai Islamic Bank PJSC ‘DIB’ wishes to announce that they have entered into a relationship to jointly manage and operate PT Bank Panin Syariah Tbk ‘Bank Panin Syariah’, a listed Syariah commercial bank in Indonesia.
The envisaged investment in Bank Panin Syariah will involve DIB accumulating around 25% stake in Bank Panin Syariah in the initial phase, with a view to subsequently increasing its shareholding in the bank to 40% upon obtaining the relevant regulatory approval, including from the Financial Services Authority ‘OJK’ in Indonesia.
Following this investment, DIB will become a substantial shareholder in Bank Panin Syariah, and Bank Panin will remain as controlling shareholder of Bank Panin Syariah.
Bank Panin Syariah offers Islamic banking services in Indonesia. DIB intends to cooperate with Bank Panin in order to promote the growth of Sharia banking in Indonesia. To achieve this, DIB will provide its well-established expertise in Islamic banking operations to Bank Panin Syariah, which will be bolstered by Bank Panin’s knowledge of the local market.
Bank Panin Syariah is currently controlled by PT Bank Panin and currently operates through a network of 10 branches (with its head office located at Panin Life Center Building, Jakarta). The bank is listed on the Indonesia stock exchange and successfully completed its IPO in January 2014 to raise approx. IDR475bn (approx. $42m) through the issuance of right shares. The bank has assets over IDR4.3 trillion (approx. $375m) whereas its equity base stood at over IDR998bn (approx. $88m) as at Mar 31, 2014.
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