Bahrain-based Sakana Holistic Housing Solutions, the innovative Islamic mortgage finance provider, is planning to increase its paid-up capital to BD40 million ($106 million) from BD20 million.

Shareholders approved in principle to increase the capital either by way of rights issue to existing shareholders or by private placement to new shareholders, at an extra-ordinary general meeting (EGM) at Elite Suites.

They also approved in principle issuance of sukuk or other financial instruments up to BD100 million to finance the company's business.

Both these decisions are subject to approval of the Central Bank of Bahrain and other relevant authorities. It also held an annual general meeting (AGM) and approved financial statements for last year.

Sakana has successfully completed three years of commercial operations and mortgage financing income for last year increased by approximately 47 per cent and net profit reached BD712,000 growing by 22 per cent in comparison to 2008.

These results were achieved against the backdrop of extremely challenging market conditions.

The shareholders also approved re-appointment of Abdul Hakim Al Mutawa, Jamal Mohammed Hijres, Reyadh Yousif Sater, Tawfiq Al Bastaki and Mazen Ahmed Alumran as members of board of directors for a term of three years.

The AGM and EGM were followed by a board meeting which was chaired by incoming chairman Mr Sater. The board elected Mr Mutawa as vice-chairman of the new board.

'Taking over Sakana's chairmanship at current market condition is challenging particularly in addressing the funding issue of the company whilst growing the mortgage book. In this relatively short period of three years, we have successfully established the brand and I thank my predecessor, other board members, management and shareholders for their contribution,' said Sater.

Sakana is reviewing its business plans in line with changing market conditions in the real estate and mortgage market. Sakana will continue to play a catalyst role for the prosperity of the housing and mortgage sectors.-TradeArabia News Service