Company News

Emirates NBD Launches AED6.45 Billion Rights Issue
(17 October 2019)

Emirates NBD Bank today announced that it proposes to raise AED6.45 billion via a rights share offering to strengthen its capital base and support the future growth of the business.

In a statement issued by the bank on Thursday, the lender plans to offer 758.8 million shares at AED8.50 each, reflecting the nominal value of AED1.00 per New Share and a share premium of AED7.50 per New Share. This represents a discount of 35.36 percent to the price of each of Emirates NBD's shares on the Dubai Financial Market, DFM, at the close of business on 16th October 2019.

The New Shares will rank on equal footing with Emirates NBD's existing shares including the right to receive all future dividends and other distributions declared, made or paid after 31st October 2019, including any dividends to be approved and paid in respect of Emirates NBD's financial year ending 31st December 2019.

The terms and launch of the Rights Issue were approved by the Board of Directors of Emirates NBD on 15th October 2019, following the approval of the Rights Issue at Emirates NBD's General Assembly meeting. The Rights Issue has also been approved by the UAE Security and Commodities Authority and the UAE Central Bank.

Emirates NBD intends to use the net proceeds raised from the Rights Issue to strengthen its capital base and to support future growth of the business of Emirates NBD.

Emirates NBD increased its foreign ownership limit, FOL, from five percent to 20 percent on 2nd September, and announced its intention to increase its FOL to 40 percent in the future.

Hesham Abdulla Al Qassim, Vice Chairman and Managing Director of Emirates NBD, said, "This milestone announcement is testament to our long-term commitment to our shareholders and the UAE investor community. We are pleased to offer our valued and loyal shareholders an exceptional opportunity to participate in our continued growth and success as we remain key partners to the growth agenda and vision of our nation’s esteemed leadership".

Emirates NBD Capital has been appointed as Lead Manager and Bookrunner in respect of the Rights Issue. Emirates NBD Bank PJSC1 Capital, Citigroup Global Markets Limited and Morgan Stanley & Co. International are advising Emirates NBD regarding structuring, sizing and pricing of the Rights Issue.

The Rights Issue will be conducted through the issue of tradable securities pursuant to the Decree of the UAE Securities and Commodities Authority’s Chairman of the Board No. 11RM of 2016 to registered shareholders of Emirates NBD as at the close of business of the DFM on Wednesday, in the amount of one Right for every eight shares held on such date.

In order to receive Rights on 31st October, investors must ensure that they execute any purchase orders for shares at least two days prior to 31st October, i.e. on or before 14:00 (UAE time) on 29 October 2019, to allow for the settlement of trades on the DFM (which operates on a T+2 basis).

Shareholders of Emirates NBD will be entitled to trade their Rights on the DFM, whether to sell some or all of their Rights or to buy additional Rights, commencing on Sunday, 3rd November 2019 and ending on Thursday, 14th November 2019.

Emirates NBD has appointed itself as the Sole Receiving Bank. Clifford Chance LLP and Matouk Bassiouny & Ibrahim have been appointed as International Legal Adviser and UAE Legal Adviser, respectively.

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