Emirates NBD, which is one of the largest banks in the Middle East in terms of assets, is planning to raise around $2.4 billion from a rights issue. According to reports, the bank will use the funds to expand its business abroad and attract more foreign investment into the bank.

Emirates NBD will offer 758.8 million shares at Dh8.5 each and a premium of Dh7.50 per new share, the bank said in a statement.

Hesham Abdulla Al Qassim, vice-chairman and managing director of Emirates NBD told the media, “This milestone announcement is a testament to our long-term commitment to our shareholders and the UAE investor community. We are pleased to offer our valued and loyal shareholders an exceptional opportunity to participate in our continued growth and success as we remain key partners to the growth agenda and vision of our nation’s esteemed leadership.”

The Board of Directors of Emirates NBD approved the bank’s decision to raise funds from a rights issue on October 15, 2019. The bank also has clearance from the UAE Security and Commodities Authority and the UAE Central Bank.

The bank has appointed Emirates NBD Capital as lead manager and also bookrunners with regard to the rights issue.

Last month, Emirates NBD also raised the cap on foreign ownership in the bank from 5 percent to 20 percent. The bank is further increasing the cap to 40 percent after discussions with its shareholders.

Recently, Emirates NBD signed a memorandum of understanding (MoU) with the Dubai chamber of commerce and industry to provide trade finance solutions for the Digital Silk Road project.

This follows the bank’s announcement of its new supply chain and trade finance portal which will enable the bank’s clients to apply for loans digitally.