Emirates NBD seals $1bn ICD debt securities pact
Dubai, June 30, 2009
Emirates NBD said it has successfully completed the issuance of Dh4 billion ($1.08 billion) Tier 1 Debt Securities to the Investment Corporation of Dubai, the investment arm of the Government of Dubai.
These securities will enable the Bank’s Tier 1 capital adequacy ratio to exceed 11 per cent and the overall capital ratio to exceed 17 per cent.
The sole investor for this issue is the securities have a fixed rate coupon of 6.45 per cent for the first five years before becoming floating rate. The UAE Central Bank has confirmed Tier 1 Capital status for Capital Adequacy purposes.
Commenting on this issue, Ahmed Humaid Al Tayer, the chairman of Emirates NBD, said: “As the largest Bank in the UAE, it is essential that Emirates NBD is well capitalised. Through this issuance we will continue to build on and maximise the benefits of the merger.”
Mohammed Ibrahim Al-Shaibani, ICD executive director and chief executive officer, said: “A strong banking system is essential for the continued development of the UAE and through this injection of Tier 1 Capital, the ICD is able to demonstrate its full commitment to Emirates NBD.”
Rick Pudner, chief executive officer of Emirates NBD said: 'Our business model is robust and compared to our global peer group of banks, we are well capitalised.'
'The Ministry of Finance has raised the bar for the UAE banking sector’s Capital Adequacy and I am delighted with the very positive response from the ICD, for them to subscribe to this issue. This reaffirms Dubai’s position as the financial centre of the region,' he added.-TradeArabia News Service