Buruj invests SAR 103 mln from rights issue to maintain solvency

Buruj Cooperative Insurance Co. 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.

From the total proceeds, the costs related to the rights issue reached around SAR 4.8 million. Further, SAR 12 million was added to the statutory deposit in line with the capital increase.

Of the SAR 103 million used to maintain solvency margins, SAR 60 million in a time deposit, SAR 10 million in local funds, and SAR 30.25 million was invested in sukuk and bonds.

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

The difference in the costs related to the capital increase came less than the estimates amount of SAR 5 million by SAR 230,986. The amount of SAR 15 million was invested in sukuk and bonds instead of the investment in the Saudi Stock Exchange.