Saudi Arabia's Bank Aljazira has appointed the investment banking arms of Gulf International Bank and Riyad Bank to advise it on a SR3 billion ($800 million) rights issue.

The price and number of shares to be issued under the offering, which will be arranged by GIB Capital and Riyad Capital, is still pending approval from the "relevant authorities" and shareholders, the bank said in a bourse filing.

The rights issue by one of the kingdom's smaller lenders by assets will be used to strengthen its capital base and finance its activities, the bank added.

Banks in Saudi Arabia have been employing a number of ways to replenish their capital reserves in recent years, including the issuance of capital-boosting sukuk and bonus shares, after a period of strong lending growth. - Reuters