Dubai gives bank Dh4bn to meet new target

The Dubai Government Tuesday supplied Emirates NBD with Dh4 billion (US$1.08bn) in cash to help the country’s biggest lender reach the Central Bank’s new capital adequacy target.

The Government injected the capital through its investment arm, the Investment Corporation of Dubai (ICD), which owns 55.6 per cent of Emirates NBD.

The capital is Tier 1 debt, also known as preferred equity. The bank will have to pay 6.45 per cent interest for the first five years, after which the rate becomes floating.