Building on success - ADDAX Bank Raises its Capital

Date : 16 June 2007

Addax Bank, a regional bank based in Bahrain, announced that it is in the process of raising its capital to US$100million.

The capital increase is the latest in a series of achievements Addax has realised.

Addax completed 2006 with a return on equity of 85%; that return came on the heels of 32% in 2005 and 10% in Addax’s first year of operations, 2004.

In May 2007, the prestigious Banker Middle East Magazine named Addax “Best New Bank” in its annual Industry Awards. The Banker Middle East win follows Addax’s move into its new headquarters, the 15-storey Addax Tower, in the Seef District in Bahrain.

“We are very proud of our achievements. I believe Addax’s return on equity is the highest in the region; our growth rates in terms of revenue, margins and profitability are excellent; our new headquarters are a testament to the solidity of our balance sheet as well as our commitment to Bahrain. As for the Banker’s award, it’s very heartening for all of Addax’s team to get such recognition, amidst the intense competition”, said Yousef Al Essa, Addax’s CEO.

Recently, Addax has completed the capitalisation of Addax Securities Saudi Arabia, the bank’s new investment banking arm in the Saudi market, as well as Education Capital, Addax’s specialist investment vehicle focusing on the educational sector in the MENA region. The new ventures cement Addax’s track record of innovative, solid deals.

“We have completed deals in the real estate, hospitality, education, media and information technology sectors; yet we believe we’ve just scratched the surface. Addax is currently working on a new, specialist wealth management firm, based out of Abu Dhabi, with a focus on affluent, yet under served segments in the Gulf; we are also assessing a strategic partnership in Kuwait; and in the early stages of establishing a presence in Oman. Our goal is to build on our successes and track record and grow Addax’s footprint and access to all of our key markets in the region”, added Yousef Al Essa.