Emirates NBD Adds 4 Billion Dirhams to Tier I Capital

Emirates NBD PJSC, the United Arab Emirates’ biggest lender by assets, sold 4 billion dirhams ($1.09 billion) of bonds to the Dubai government to meet a capital target set by the central bank.

It will pay interest of 6.45 percent for five years and a floating rate thereafter on the “Tier I” securities sold to Investment Corp. of Dubai, a government-owned holding company and the bank’s controlling shareholder, the lender said today in an e-mailed statement.

The sale lifts Emirates NBD’s Tier 1 capital ratio to over 11 percent, from 9.4 percent in December, the statement said. The central bank set a June 30 target of 11 percent for Tier 1 capital, a gauge of a lender’s ability to absorb losses.