DBS Bank and prominent Middle Eastern investors
launch The Islamic Bank of Asia
* * *
New Islamic bank combines DBS' Asia banking
expertise with
Middle Eastern investors' extensive network
SINGAPORE, 7 May 2007 DBS Bank (DBS) today launched The Islamic Bank
of Asia (IB Asia) after receiving official approval from the Monetary
Authority of Singapore for a full bank licence. IB Asia's founding shareholders
include majority stakeholder DBS and 22 Middle Eastern investors from
prominent families and industrial groups from Gulf Cooperation Council
(GCC) countries.
IB Asia will be incorporated with an initial paid-up capital of USD418
million with DBS contributing USD250 million and holding an initial
stake of 60 percent. IB Asia's second closing with other GCC investors
in the coming weeks is expected to increase IB Asia's capital to USD500
million. With the proposed capital injection, DBS will continue to hold
a majority stake with no less than 50 percent plus one share.
IB Asia will be a subsidiary of DBS based in Singapore, and will commence
operations this month from its separate ground floor offices in DBS'
headquarter facilities. IB Asia will focus on commercial banking, corporate
finance, capital market and private banking services.
IB Asia will have a nine-member board of directors with His Excellency,
Abdulla Hasan Saif, Advisor for Economic Affairs to the Prime Minister,
Bahrain, as Chairman.
Mr. Jackson Tai, Vice Chairman and Chief Executive Officer of DBS will
serve as Vice Chairman. The other board members are:-
- Mr. Khalid Abdulla Al-Bassam, Chairman of Bahrain Islamic Bank
and former Deputy Governor of Bahrain Monetary Agency
- Mr. Khalid Abdullah Al-Zamil, Director and Partner of Al-Zamil
Group of Companies
- Mr. Andrew Buxton, Former Chairman of Barclays Bank plc, and
a board member of DBS Group Holdings
- Mr. Lee Hsien Yang, former Chief Executive Officer of SingTel
Group
- Mr. Lim Siong Guan, Chairman of the Economic Development Board
of Singapore
- Mr. Abdullah Tarmugi, Speaker of the Singapore Parliament, and
former Minister-in-charge of Muslim Affairs
- Mr. Eric Ang, DBS' Managing Director and Joint Head of Global
Financial Markets
Mr. Tai said IB Asia will originate and distribute innovative wealth
management and capital market instruments for corporate and private
banking clients in the Middle East and Asia. He said: "Singapore
is becoming a convenient stopover for GCC investors and capital
flows bound for Asia. Against this backdrop, The Islamic Bank of
Asia is strategically well-positioned not only at the financial
crossroads of Asia, but also in Singapore, an Asian capital markets
centre renowned for its effective regulatory and corporate governance
framework."
He added that the credibility of IB Asia stems in part from DBS'
partners in the Middle East, the majority of whom are prominent
merchant families, as well as the stature of the Shariah Board.
He noted the world-wide scarcity of Islamic scholars who are also
experts on finance and banking, saying, "We have engaged four
of the most respected Islamic scholars to guide our operations -
Sh. Nizam Mohammad Saleh Yaqouby, Sh. Dr. Mohamed Ali Elgari, Dr.
Abdul Sattar Abdul Kareem Abu Ghuddah and Dr. Mohd Daud Bakar."
His Excellency Abdulla Hasan Saif said that the diversity and strength
of the Middle Eastern shareholders will provide opportunities for
IB Asia to tap into the GCC network. His Excellency previously served
as Bahrain's Minister of Finance & National Economy and the Governor
of the Bahrain Monetary Agency.
He said: "Middle Eastern investors are seeking new markets and
innovative ways to protect and grow their wealth. With our strong
Shariah credentials and good understanding of the cultural nuances
in the Middle East, The Islamic Bank of Asia will be at the forefront
of new market-based ideas to structure and introduce opportunities
in Asia that uphold Islamic banking principles."
Vince Cook, 45, a veteran banker with more than 20 years of banking
experience in the Middle East, will be IB Asia's Chief Executive Officer.
He was formerly the General Manager of Qatar National Bank in Doha
and prior to that, the Managing Director for Barclays Capital in Dubai
covering the GCC market.
The launch of IB Asia follows DBS' stepped-up participation in the
Middle East markets. In the last two years, DBS has placed a significant
portion of large, landmark equity IPOs and securitisations in the
Middle East. Last April, DBS was among the first few Asia-based banks
to receive a banking licence from the Dubai International Financial
Centre.
About DBS
Headquartered in Singapore, DBS is one of the largest financial
services groups in Asia with operations in 15 markets. The largest
bank in Singapore as measured by assets, and a leading bank in Hong
Kong, DBS' "AA-" and "Aa1" credit ratings are
among the highest in the Asia-Pacific region. DBS has leading positions
in consumer banking, treasury and markets, asset management, securities
brokerage, equity and debt fund raising. Beyond the anchor markets
of Singapore and Hong Kong, DBS serves corporate, institutional
and retail customers through its operations in China, India, Indonesia,
Malaysia, Thailand and The Philippines. More information about DBS
Group Holdings and DBS Bank can be obtained from our website www.dbs.com.