Dubai Islamic Bank will open subscriptions on Tuesday for a Dh3.16 billion ($860.3 million) rights issue aimed at bolstering the capital base of the UAE's largest sharia-compliant lender.

The bank is offering 988.4 million new shares to shareholders in total, with subscription open on the basis of one new share for every four currently held, according to a document detailing the offering.

Shares are priced at Dh3.2 each, a substantial discount to Monday's closing share price of Dh4.95.

Rights issues in the Gulf are traditionally sold at substantial discounts to the stock price to attract local subscribers.

Those wishing to sell their rights to buy new stock can do so until June 13, with the subscription period for the capital increase closing on June 20.

DIB is the latest bank in the Gulf region to seek to raise its capital ratios, either through a rights issue or the sale of capital-boosting bonds or sukuk, to replenish reserves after a period of strong lending growth and to meet incoming global banking standards.

Its chief executive said in January that the bank would need capital in 2016.

DIB's total capital adequacy ratio, a key indicator of a bank's financial health, stood at 15.6 percent at the end of March, according to its financial statement, above the UAE's regulatory minimum of 12 percent. - Reuters