Emirates NBD to acquire majority stake in RBL Bank through primary infusion of ~USD 3bn

Emirates NBD Bank (P.J.S.C.) and RBL Bank Limited have approved entering into definitive agreements for Emirates NBD to acquire controlling stake in RBL Bank through a primary infusion of approximately USD 3bn. This is the largest FDI and equity raise in the Indian banking sector till date. The proposed investment will be made via a preferential issue of up to 60% and will be subject to regulatory approvals and other customary closing conditions. As part of this transaction, Emirates NBD will also make a mandatory open offer for the purchase of up to 26% stake from the public shareholders of RBL Bank. The amalgamation of the India branches of ENBD with and into RBL Bank is expected to be completed after the execution of the preferential issuance into RBL Bank.