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Emirates NBD plans to raise $250m

Deal to be completed by mid-August

Gulf News

Dubai: Emirates NBD is in the process of raising $250 million (Dh919.5 million) from international financial markets through auto loan securitisation.

"This is the first of its kind securitisation deal in the region where we are bundling our auto loan portfolio to raise funds at internationally competitive rates. The securitisation deals form part of our efforts to augment our medium term funding," Rick Pudner, Chief Executive Officer of Emirates NBD, said yesterday.

The bank expects to complete the deal by mid-August. The bank officials said yesterday that the funding remains stable and the bank's deposit mobilisation initiative proved successful with the loans to deposit ratio improving 118 per cent at the end of 2009 to 103 per cent at the end of the second quarter of 2010.

The bank is also expected to raise funds through a strategic sale of a minority stake in its cards processing unit Network International. The bank has been in talks with potential investors. "We expect the deal to be completed in next 3 to 4 months."

Pudner said that while the wholesale funding remains challenging in the medium term, the bank is comfortable in its liquidity position with unused facilities Dh27.8 billion and net liquid assets of Dh18.7 billion at its disposal.

Overall, the bank officials said the bank's term debt maturity profile is with in its funding capacity. While customer deposits represent 79 per cent of its total liabilities, wholesale debt was about 8 per cent of liabilities. Out of the Dh7.5 billion debts maturing this year, the bank has brought down the debt outstanding to Dh5.7 billion at the end of second half.

The bank on Monday confirmed the appontment of Surya Subramanian, a former Standard Chartered banker, as its new chief financial officer.