Abu Dhabi Islamic Bank (ADIB) said on Thursday its board has agreed to convert Islamic bonds held by Emirates International Investment Co to stocks.

Emirates International, owned by Abu Dhabi's ruling family, reached a deal in March to raise its stake in the bank to around 51 per cent from 37 per cent by buying Dh2 billion ($544.7 million) of convertible Islamic bonds.

The bonds issued in March would be converted to 47.06 million shares at Dh42.5 each, raising the lender's paid-up capital by 31.3 per cent to Dh1.97 billion, ADIB said in a statement on the Abu Dhabi bourse Web site.

Abu Dhabi Islamic, the third-biggest Gulf Arab Islamic lender by market value, complies with Islamic law or sharia, which bans charging interest and prohibits investment in alcohol and gambling.-Reuters