RBL Bank to raise up to USD 1 bn from overseas investors

Private lender RBL Bank on Monday said its board approved the mobilisation of up to USD 1 billion from overseas investors through bond issuance.

The board approved the establishment of a Euro Medium Term Note Programme (EMTN Programme) in accordance with Regulation S of the US Securities Act, 1933, subject to regulatory, statutory and other approvals, RBL Bank said in a stock exchange filing.

The board cleared a proposal to enable issuance of foreign currency bonds/notes/any other debt securities up to USD 1 billion in the future, from time to time, through one or more transactions, subject to the market conditions and regulatory compliances, for raising funds through permissible modes under the EMTN Programme, the bank said.


The private lender informed the stock exchanges that the board also gave the go-ahead to delegate certain powers and authorities to the bank's Borrowing Committee to decide and undertake all necessary actions in connection with the EMTN Programme and the issuance of the securities.

In June, Emirates NBD Bank announced the successful completion of the acquisition of a majority stake in RBL Bank through a primary infusion of approximately USD 2.75 billion (about Rs 26,000 crore).

It constitutes the largest foreign direct investment in the Indian banking sector, the largest equity fund raise in the Indian banking sector, one of the largest fund raises through preferential issuance by a listed company in India and marks the first acquisition of a majority interest in a profitable Indian bank by a foreign bank.

The investment has been completed through a preferential issue of shares, resulting in Emirates NBD acquiring a majority stake in RBL Bank.

In connection with the transaction, Emirates NBD also completed a mandatory open offer to the public shareholders of RBL Bank in accordance with applicable regulations. Following the completion of the transaction, Emirates NBD holds 60 per cent of the expanded share capital of RBL Bank.