Emirates NBD announced that it is proposing to increase its issued capital by AED 758.82 million to AED 6.316 billion, compared to AED 5.557 billion, through the issuance of new shares of 758 million, 823 thousand and 529 shares. »To raise up to AED 6.45 billion, including a bonus issue of AED 7.5 per new share, through rights issue.

The bank said in a statement yesterday that it had published an invitation to shareholders to subscribe to the new shares. Questions and answers related to the rights issue will be available on the Bank's website ( www.emiratesnbd.com ).

The new shares will be issued at an issue price of 8.5 dirhams for the new share (issue price), reflecting the nominal value of 1 dirham per new share and a premium of 7.5 dirhams per new share. This represents a 35.36% discount on the price of each Emirates NBD share on the DFM as of the closing date on 16th October.

The new shares will be categorized on an equal footing with existing Emirates NBD shares, including the right to receive all future dividends and other dividends announced, realized or paid after October 31, including any dividends approved and paid. For the year ended 31 December 2019.

The terms and conditions of the rights issue were approved by the Board of Directors of Emirates NBD on October 15, after the rights issue was approved at the general assembly meeting held on 20 February.

The rights issue was approved by the Emirates Securities and Commodities Authority and the Central Bank.

The Bank intends to use the net proceeds from the rights issue to strengthen its capital base and support its future growth.

The bank also increased its foreign ownership from 5% to 20% on September 2, and announced its intention to increase the foreign ownership to 40% in the future. The bank will seek the necessary approvals from its shareholders and relevant regulatory bodies in due course.

The issuance of the Rights Issue will be effected through the issuance of tradable securities, pursuant to the decree issued by the Chairman of the Emirates Securities and Commodities Authority No. (11 / RM) for the year 2016 to the registered shareholders of the Bank, as at the end of the working day in the market. Dubai Financial Market (DFM), one of every eight shares held on that date, has one IPO. To receive the rights on October 31st, investors must ensure that they execute any share purchase orders within at least two days prior to October 31st, on October 29th, in order to enable trading on the Dubai Financial Market.

The new shares will be allocated to qualified people on Monday 25 November. Eligible persons who have not received the number of new shares subscribed will be refunded on or around Saturday 30 November.

Hisham Abdulla Al Qasim, Vice Chairman and Managing Director, Emirates NBD, said: “This announcement is an important event and a clear demonstration of our long-standing commitment to our shareholders and the investor community in the UAE. We offer our shareholders this valuable and exceptional opportunity to participate in our continued growth and success, and we will always remain key partners in supporting our growth plans and shaping our Government's vision. ”