Emirates NBD open to cash support from gov't

FUNDING VIEW: Emirates NBD said on Wednesday it was open to getting support from governments. (Getty Images)

Emirates NBD is open to getting support from Dubai or the UAE federal government as it looks to raise capital adequacy ratios according to central bank requirements, its chairman said on Wednesday.

"Why not? Banks all over the world got support from their government ... it's normal," Ahmed al-Tayer said. "We haven't discussed the conditions yet."

The bank will raise about $1 billion this year to increase its capital adequacy ratio to 11 percent, the bank's chief financial officer said on March 23.

The government of Gulf oil exporter Abu Dhabi in February injected 16 billion dirhams ($4.36 billion) into five of its banks through capital notes to boost confidence as loan defaults mount.

The cash injection took the form of Tier 1 capital notes, which will pay 6 percent annual interest for five years and a floating rate thereafter. (Reuters)

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