Dubai Islamic Bank (DIB) is to jointly manage and operate an Indonesian commercial bank, Panin Syariah.
DIB will take an initial 25 per cent stake in the bank, with a view to increasing its shareholding to 40 per cent once it has obtained regulatory approval from Indonesias financial services authority. Bank Panin will remain as controlling shareholder in the bank.
DIB anticipates the acquisition will help it capitalise on the strong growth in Islamic financing in Indonesia.
Bank Panin Syariah is listed on the Indonesian stock exchange and completed its initial public offering (IPO) in January this year.