Deal to help NBB expand into Islamic banking

The National Bank of Bahrain (NBB) and a local pension fund will buy a 51.6-percent stake in Bahrain Islamic Bank. As part of the deal, NBB and Social Insurance Organization Asset Management Company, a unit of pension fund Social Insurance Organization, will each take a 25.8-percent stake in Bahrain Islamic for 72 fils per share. Based on Bahrain Islamic’s total outstanding shares, the value of the deal is about 34.9 million dinars ($92.57 million). The transaction will provide NBB an opportunity to expand into Islamic banking.