Bloomberg/Duncan Chard

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Emirates NBD set to hire banks for $2 billion rights sale

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Last week, the lender raised the cap on foreign ownership limit to 20 per cent from five and will seek shareholder approval to double the new limit to help attract capital.

Sunday 08, September 2019

Dubai’s Emirates NBD is close to appointing Citigroup and Morgan Stanley to manage a rights share offering of as much as $2 billion, reported Bloomberg.

The lender may also involve its investment banking division, Emirates NBD Capital, in the process and could hire other banks as well, however, banks have not formally been hired for the sale and the situation may change.

Emirates NBD’s move to raise the cap on foreign ownership comes after bank completed the acquisition of Turkey’s Denizbank for TRL 15.48 billion ($2.65 billion) in July. The bank plans to raise its capital by $2 billion from an issue of new shares to help fund the deal.

Recently, the bank said that it raised GBP 305 million ($373 million) from the sale of a stake in London-listed Network International Holdings.

Similarly, First Abu Dhabi Bank proposed removing the limit after raising it to 40 per cent in February.

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

 

TAGS : Emirates NBD, Network International Holdings, First Abu Dhabi Bank , Denizbank, Morgan Stanley, Citigroup

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