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Emirates NBD to raise USD 1.8bn in rights issue
Posted on Thursday, 17 October 2019 13:19
Emirates NBD Bank is raising AED 6.50 billion (USD 1.76 billion) in a rights issue that Zephyr, the M&A database published by Bureau van Dijk, shows is the largest by a global financial instruction announced in 2019 to date.
The state-controlled lender has hired Emirates NBD Capital as lead manager and bookrunner for the issue of up to 785.82 million new shares on the basis of one new scrip for every eight currently held.
It has priced the cash call at AED 8.50 apiece, which represents a discount of 35.4 per cent to the last unaffected close yesterday.
Emirates NBD will use proceeds from the rights issue, which Zephyr shows is the eighth-largest ever by a Middle Eastern company, regardless of sector, to strengthen its capital base and support future growth of its business.
The banking group has total assets of AED 537.80 billion, as at 30th June 2019 (30th June 2018: AED 477.50 million).
It currently operates 233 branches and 1,081 automated teller machines across the Emirates and overseas, in Saudi Arabia, Egypt, India, Singapore, and the UK.
Emirates NBD also has a presence in Turkey after acquiring Denizbank, which had assets of AED 134.00 billion, as at 30th June 2019, in July 2019.
Last month, the lender lifted the cap on foreign ownership holding from 5.0 per cent to 20.0 per cent, and said it wants shareholder and regulatory permission to increase this limit to 40.0 per cent.
Also last month, it created the UAE’s first digital business bank for entrepreneurs and small and medium-sized businesses.
Emirates NBD had a capital adequacy ratio of 21.5 per cent, tier 1 of 20.4 per cent and common equity tier 1 of 17.4 per cent, as at 30th June 2019.
The group booked net profit of AED 7.48 billion in the first six months of 2019, up from AED 5.02 billion in H1 2018.
© Zephus Ltd