Emirates NBD to buy 60% in RBL Bank for $3 bn

IN one of the largest-ever FDI in Indian financial services sector, UAE-based Emirates NBD Bank and RBL Bank Limited has announced that their respective Boards have approved definitive agreements for ENBD to acquire a controlling stake in RBL Bank through a primary capital infusion of about $3 billion (26,850 cr).

- ENS ECONOMIC BUREAU @New Delhi

This landmark transaction sets multiple records, establishing itself as the largest ever foreign direct investment (FDI) in the Indian financial services sector. This is also the largest ever equity fund raise in the Indian banking sector, and is first acquisition of a majority interest in a profitable Indian bank by a foreign bank.

The investment will be executed through a preferential issue of new shares, giving ENBD up toa 60% stake in RBL Bank. In accordance with Indian securities regulations, ENBD will also make a mandatory open offer to public shareholders to acquire up to a further 26% stake.