Emirates NBD to Acquire 60% Stake in India's RBL Bank

Emirates NBD Bank PJSC has agreed to acquire a 60% stake in RBL Bank Ltd. for approximately $3.05 billion, representing the largest foreign investment in India's financial sector to date. The Dubai-based lender will invest 268.53 billion Indian rupees (approximately $3.05 billion) through a preferential issue of up to 959 million new shares priced at 280 rupees each, according to exchange filings. Bloomberg reported that this price reflects a 6.5% discount to RBL's previous closing price. As reported by Reuters, Emirates NBD will also launch a mandatory open offer to acquire additional shares from retail shareholders, in compliance with Indian regulations. The transaction is contingent upon regulatory approval. While Indian regulations typically cap a single foreign institution's holding at 15%, Reuters reported that the Reserve Bank of India (RBI) has informally signaled its support for the deal. In a joint statement, the banks emphasized that the investment reflects Emirates NBD’s confidence in India’s rapidly expanding financial sector and aligns with the strategic India-Middle East-Europe Economic Corridor initiative.