Dubai’s largest lender Emirates NBD Bank raised an additional capital of AED 6.45 billion by issuing new shares with an over-subscription of approximately 2.8 times.

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

Overall demand in Emirates NBD’s rights issue from non-UAE investors was over AED 11 billion, equivalent to 62.6 percent of the total funded commitments from investors, driven by the recent increase in Emirates NBD’s Foreign Ownership Limit from 5% to 20%.

The state-owned bank, in a statement, said 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 AED 6.45 billion successfully closed on 20 November 2019, with strong demand from UAE, Middle East and international investors resulting in total funded commitments in excess of AED 18 billion, representing an oversubscription of approximately 2.8 times.”

His Highness Sheikh Ahmed Bin Saeed Al Maktoum, Chairman, 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”.

In October 2019, the bank posted a 63 percent net profit surge to AED 12.5 billion in nine months. The results include a AED 4.4 billion impact from the Network International transaction.