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24 November 2019

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





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