Shares in Emirates NBD Bank PJSC
The Dubai-based bank, which is said to be preparing a bid for PAO Sberbank of Russia's Turkish unit DenizBank AS, is seeking shareholder approval to offer new shares with a nominal value of 1 dirham per share at a subscription price per share of no less than a 10% discount to the prevailing market price.
The capital increase is meant to ensure that the UAE lender's common equity Tier 1 ratio will not fall below the required minimum of 11% with the potential acquisition, Reuters reported, citing SICO Bahrain banking analyst Chiradeep Ghosh. Emirates NBD Bank's Basel III CET1 ratio stood at 16.4% at the end of 2017.
The bank is also planning to increase its foreign ownership limit to 20% from 5%, Bloomberg News reported.
A change in foreign ownership limit at the UAE lender may result in its inclusion on MSCI's emerging markets index, Arqaam Capital said in a research note, the newswire said. Arqaam said the earliest window for the possible inclusion is November, and it should lead to passive inflows to Emirates NBD of approximately $210 million, according to the report updated March 12.
The proposals will be discussed at a general meeting of shareholders on March 27.
The company's shares closed at 10 dirhams March 11, up 13.64% from the previous closing price.
As of March 9, US$1 was equivalent to 3.67 United Arab Emirates dirhams.
