Buruj declares use of proceeds from rights issue

Buruj Cooperative Insurance Co. (Buruj) has used around SAR 103.2 million out of the total SAR 120 million proceeds generated from the rights issue on April 16, 2015 to maintain its solvency margin requirements, the insurer said in a statement to Tadawul on Wednesday.

The direct and indirect costs related to the rights issue reached around SAR 4.8 million, and SAR 12 million was added to the statutory deposit in line with the capital increase.

Of SAR 103.2 million that was used to maintain solvency margin requirements, SAR 60 million was invested in time deposit, SAR 10 million in local funds, and SAR 30.25 million was invested in sukuk and bonds.

The costs related to the capital increase came to of SAR 5 million,  SAR 230,986 below the estimates given in the rights issue prospectus. 

 Also, SAR 15 million which was planned to be invested in the Saudi Stock Exchange was instead invested in sukuk and bonds.

The remainder of around SAR 3 million was deposited in a current account.