Emirates NBD, which reported a net profit of Dh1.26 billion for the first quarter of the current year, will be issuing Dh3.5 billion worth Tier 1 perpetual debt notes in the second quarter through a private placement.
This will help the bank achieve the Central Bank requirement of reaching minimum 11 per Tier 1 capital ratio by June 30, 2009. Emirates NBD, which had a Tier 1 capital ratio of 9.4 per cent as of December 31, 2008, could improve it to 9.7 per cent as of March 31, 2009 leaving a gap of 1.3 per cent more to be achieved within three months.
To a question whether these notes will be exclusively placed with Investment Corporation of Dubai (ICD), the largest shareholder in the bank, Sanjay Uppal, group Chief Financial Officer of the bank said: "The modalities of the private placement are still being worked out."
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