| Arab Banking Corporation | |
|---|---|
| Type | Private |
| Founded | 1980 |
| Headquarters | ABC Tower, Bahrain |
| Key people | Muhammad Layas (Chairman) |
| Industry | Banking |
| Products | Corporate banking merchant banking |
| Website | Official website |
Arab Banking Corporation was incorporated as a Bahrain joint stock company on January 17, 1980 through a special decree by the Amir of Bahrain. It obtained an offshore banking unit licence from the Bahrain Monetary Agency on April 7, 1980, and began operations in the same month. It is headquartered at ABC Tower in the Diplomatic Area of Bahrain.
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Background
One of the reasons for the bank's formation was the recognition that despite the established presence of Arab banks in international financial markets, they were restricted in the volume of their activities by their comparatively small capital structures. As such, ABC was established with an authorised capital of US$1,000 million, of which US$750 million was issued and paid by April 1, 1981. The three original shareholders were the Abu Dhabi Investment Authority, Kuwait's Ministry of Finance and the Libyan Secretariat of Treasury (later the Central Bank of Libya). Each of these holding one-third of ABC's share capital until 1990. At the end of 1989, ABC's authorised capital was increased to US$1,500 million. In 1990, the bank listed its shares on the Bahrain Stock Exchange and Paris stock exchange (now Euronext) and increased its paid-up capital to US$1,000 million by a public offering in Bahrain and an international private placement.
Operations
Today, the bank has a network of branches, representative offices, subsidiaries and affiliates in over thirty countries around the world, including most principal international financial centres. Its branch offices are situated in Grand Cayman, New York and Tunis. The bank provides a range of banking services and its branches focus principally on wholesale commercial and corporate banking and trade finance services, while its subsidiaries concentrate on the domestic retail and merchant banking sectors.
Further Activities
In 1985, it acquired 75% of Sun Hung Kai Bank in Hong Kong (formerly known as International Bank of Asia or more commonly known as IBA), which changed its name to Fubon Bank in 1986. In 1990, ABC purchased the remaining 25%, and IBA became a wholly owned subsidiary until October 1993, when China Everbright Holdings acquired 20%. In November the same year, the bank was listed on the Hong Kong Stock Exchange. In February 2004, Fubon Financial Holding Co., Ltd., a banking, insurance and securities institution, acquired the shares of the ABC and the China Everbright Group, and became a 75% shareholder.
