Font Size
Share this article


Print Friendly Version
24 November 2019
HALAL ECONOMY

Emirates NBD raises AED 6.45 billion in an oversubscribed rights issue

The net proceeds raised from the rights issue will be used to strengthen the lender’s capital base and to support future growth of the business.

Shutterstock/Kamni Jethani

by Kudakwashe Muzoriwa

Dubai’s Emirates NBD Bank has raised AED 6.45 billion ($1.76 billion) by issuing new shares after the capital call was oversubscribed by about 2.8 times.

The lender stated that the strong demand from the UAE, Middle East and international investors resulted in total funded commitments in excess of AED 18 billion.

HH Sheikh Ahmed Bin Saeed Al Maktoum, the Chairman, Emirates NBD, said, “The positive response we have received will further strengthen our balance sheet and help progress milestones as we continue our growth journey and commitment to our shareholders.”

Emirates NBD said that the overall demand in the bank’s rights issue from non-UAE investors was in excess of AED 11 billion, equivalent to 62.6 per cent of the total funded commitments due to the recent increase in the lender's foreign ownership limit from five to 20 per cent.

Lenders across the GCC are trying to broaden the base of their investors as a combination of low oil prices, slowing economic growth and geopolitical upheavals drain inflows.

 


RELATED STORIES: Emirates NBD foreign ownership rights issue


RECOMMENDED NEWS



BRANDS MAGAZINES LATEST EDITION

OUR BRANDS



CPI Financial was established in Dubai in 1999 to meet the needs of an ever-expanding financial community, offering a comprehensive portfolio of market-leading products and services tailor-made for the banking and financial services sectors.


Subscribe to our News Letter

Subscribe

© 2019 CPI Financial. All rights reserved.

No part of this website may be reproduced or used in any form of advertising without prior permission in writing from the editor.