We noticed you're blocking ads.

Keep supporting great journalism by turning off your ad blocker.

Questions about why you are seeing this? Contact us

Font Size

- Aa +

Tue 1 Sep 2009 01:02 AM

Font Size

- Aa +

Emirates NBD plans up to $2bn capital raising - report

Lender seeking to take advantage of new law guaranteeing bonds issued by local banks.


Emirates NBD

plans to raise up to $2 billion this year, it was reported on Monday.

The National newspaper said the bank intended taking advantage of a new federal law guaranteeing bonds issued by local banks.

The bank plans to issue a three to five-year bond under a Euro Medium-Term Note (EMTN) programme, a platform from which bonds of various maturities can be launched, as soon as the Government formalises its bond guarantee scheme, the newspaper said.

''It will hopefully be this year,'' said CFO, Sanjay Uppal.

Other local banks without sufficient deposits to issue new loans are expected to follow
Emirates NBD

, Uppal added.

Back in July the Dubai-based lender confirmed it raised $1.09 billion by issuing debt securities to its majority shareholder, the Investment Corporation of Dubai (ICD).

The Gulf Arab region's largest bank by assets said the debt securities would lift its tier 1 ratio - a key measure of assessing a bank's financial strength - to more than 11 percent.

In March, the lender said its tier 1 capital ratio stood at 9.4 percent and that it was required to raise about $817 million to meet its 2009 target.

Banks in the UAE had until June 30 to comply with new central bank capital requirements.

Arabian Business: why we're going behind a paywall

For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Real news, real analysis and real insight have real value – especially at a time like this. Unlimited access ArabianBusiness.com can be unlocked for as little as $4.75 per month. Click here for more details.