MetLife AIG ANB updates use of rights issue proceeds

MetLife AIG ANB Cooperative Insurance Co. said it invested SAR 17.5 million of its rights issue proceeds in statutory deposits, in compliance with capital increase requirements, the company said in a statement to Tadawul.

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

Rights issue expenses amounted to SAR 4.24 million, while total net proceeds reached SAR 170.75 million.

A total of SAR 153.2 million was used to fulfill the solvency margin requirements, the statement said. The sum has been invested fully in time deposits with local banks and long term investment in sukuk as well.

A deviation of SAR 1.7 million was observed in capital increase costs, which were originally estimated at SAR 6 million in the prospectus, it added.

“The reason of this difference is due to the actual final costs being lower than what was initially estimated. The amount has been invested in short term deposit with local banks,” the insurer said.