Emirates NBD close to hiring banks for $2 billion rights issue: Sources

Emirates NBD Capital, the investment banking arm of the bank, may also be involved in the process, while additional banks may be hired too. (File photo: Reuters)

Emirates NBD is close to appointing Citigroup and Morgan Stanley to manage a rights share offering, Bloomberg has reported people with knowledge of the matter saying. The offering may be worth as much as $2 billion.

Rights offerings allow existing shareholders to purchase additional shares in the company.

Emirates NBD Capital, the investment banking arm of the bank, may also be involved in the process, while additional banks may be hired too, the people said.

The people quoted by Bloomberg asked not to be identified as the discussions are private and formal hiring has not concluded. The situation may also change, the people said.

When reached by Al Arabiya English, a spokesperson for Emirates NBD declined to comment.

Last week the bank announced its plan to raise its cap on foreign ownership to 20 percent from five percent, with an aim to increase the limit to 40 percent in the future.

Emirates NBD is the largest bank in Dubai, and the second largest in the UAE.
 

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