Emirates NBD rights issue oversubscribed 2.8 times

By Eudore R. Chand

DUBAI 22 November 2019: Emirates NBD Bank has announced that the subscription period for eligible persons to subscribe for new shares to be issued pursuant to Emirates NBD’s rights issue to raise additional capital of Dh6.45 billion successfully closed on 20th November 2019.

In its statement, the bank said that strong demand from the UAE, Middle East and international investors resulted in total funded commitments in excess of Dh18 billion, representing an oversubscription of approximately 2.8 times.

Sheikh Ahmed bin Saeed Al Maktoum, Chairman of Emirates NBD, said, “We appreciate the excellent response from existing shareholders in our first rights issue and are pleased to enjoy their strong support, a vote of confidence in Emirates NBD’s financial position and market standing. The positive response we have received will further strengthen our balance sheet and help progress milestones as we continue our growth journey and commitment to our shareholders.”

Overall demand in Emirates NBD’s rights issue from non-UAE investors was in excess of AED11 billion, equivalent to 62.6% of the total funded commitments from all investors received on 20th November, driven by the recent increase in Emirates NBD’s Foreign Ownership Limit from 5% to 20%.

The net proceeds raised from Emirates NBD’s rights issue will be used to strengthen Emirates NBD’s capital base and to support future growth of the business.

Dubai Gazette