MetLife AIG ANB uses part of rights issue to boost solvency

MetLife AIG ANB Cooperative Insurance Co. said it used the remaining SAR 153.2 million from its rights issue proceeds to fulfill the solvency margin requirements as well as invest in time deposits with local banks and long-term sukuk, until May 10, 2017.

A total of SAR 17.5 million of its rights issue proceeds were invested in statutory deposits, in compliance with capital increase requirements, the company said in a statement to Tadawul on Wednesday. 

Total proceeds from the rights issue that ran from March 1-27, 2016 amounted to SAR 175 million, while net proceeds stood at SAR 170.7 million.

Rights issue expenses amounted to SAR 4.2 million.

A difference of SAR 1.7 million was observed in capital increase costs, which were originally estimated at SAR 6 million as stated in the prospectus, the statement added.