|17 October, 2019

Emirates NBD's board nods to share capital increase

The number of rights to be issued to each shareholder stands at 1 right for every 8 shares held on 31 October 2019, the leading bank said.

A view of Emirates NBD head office in Dubai, UAE January 30, 2018. Image used for illustrative purpose.

A view of Emirates NBD head office in Dubai, UAE January 30, 2018. Image used for illustrative purpose.

REUTERS/Satish Kumar

Dubai – Mubasher: Emirates NBD Bank announced that its board of directors has approved by circulation to raise the bank’s issued shares capital by AED 758.823 million through the rights issue of nearly 758.823 million shares.

Accordingly, the total issued share capital will be AED 6.316 billion, according to a statement to the Dubai Financial Market (DFM) on Thursday.

The number of rights to be issued to each shareholder stands at 1 right for every 8 shares held on 31 October 2019, the leading bank said.

The issue price per new share stands at AED 8.50, while the premium per share will be at AED 7.50, Emirates NBD noted.

The first day of trading the rights on the DFM will be on 3 November 2019 and the date of shareholders’ eligibility of the rights is on 31 October 2019.

Subscription in the shares will be open on 10 November 2019 and will be closed on 20 November 2019, the DFM-listed bank highlighted.

In a separate statement, Emirates NBD revealed that it plans to use the net proceeds raised from the rights issue in boosting its capital base and bolstering its business future growth.

The rights issue will be carried out through the issue of tradable securities in line with the UAE Securities and Commodities Authority’s (SCA) regulations.

The bank will act as Lead Manager and Bookrunner in respect of the rights issue as well as the Sole Receiving Bank.

Meanwhile, ENBD Capital, Citigroup Global Markets Limited and Morgan Stanley & Co International plc have been appointed to advise Emirates NBD regarding structuring, sizing, and pricing of the rights issue, the bank highlighted.

The bank has also mandated Clifford Chance LLP and Matouk Bassiouny & Ibrahim as International Legal Adviser and UAE Legal Adviser, respectively.

Hesham Abdulla Al Qassim, vice-chairman and managing director of Emirates NBD, said: "This milestone announcement is testament to our long-term commitment to our shareholders and the UAE investor community. We are pleased to offer our valued and loyal shareholders an exceptional opportunity to participate in our continued growth and success as we remain key partners to the growth agenda and vision of our nation’s esteemed leadership".

Furthermore, the bank said it intends to raise its foreign ownership limit to 40% in the future.

On 2 September 2019, Emirates NBD announced it had increased its foreign ownership limit to 20% from 5%.

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