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Dubai’s Emirates NBD, is planning to invest up to $3.05bn in India’s RBL Bank. giving it approximately a 60% stake in the Indian lender. It plans to acquire up to 959mn new shares at INR 280/share ($3.18/share). Bloomberg notes that the Indian takeover rules also trigger an open offer for Emirates NBD to buy up to 26% from public shareholders at the same price. This transaction follows other large foreign investments recently in the financial sector, such as Abu Dhabi’s International Holding Co.’s $1bn investment in Sammaan Capital and SMBC’s $1.58bn investment in Yes Bank. Some analysts note that India’s domestic focus, low exposure to global shocks, and rapid digital adoption make its banking sector an attractive entry point for foreign capital. RBL Bank’s CEO said the deal will fuel its expansion in corporate lending, accelerate retail loan growth, and facilitate the use of digital technology to tap into the Middle East. The transaction is subject to regulatory approval. Emirates NBD will merge its Indian branches with RBL Bank, maintaining a minimum 51% shareholding.
Emirates NBD’s dollar bonds traded stable across the curve with its 6.25% Perp trading at 102.03, yielding 5.76%
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