By Martin Morris
Lender seeking to take advantage of new law guaranteeing bonds issued by local banks.
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
, 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.