ICRA places RBL Bank's long-term rating on watch with positive implications
ICRA places RBL Bank's long-term rating on watch with positive implications after Emirates NBD PJSC (ENBD) announced it would invest up to ₹26,850 crore to acquire a 60% stake in RBL.
The potential acquisition of a 60% stake by Emirates NBD and the subsequent increase in RBL's net worth to ₹44,500 crore is a significant event that could substantially impact the bank's capitalization and operational scale.
The credit rating has been placed on 'rating watch with positive implications'.
* ICRA has placed RBL Bank's long-term rating on watch with positive implications following the announcement that Emirates NBD PJSC (ENBD) will invest up to approximately $3 billion (₹26,850 crore) to acquire a 60% controlling stake in RBL through a preferential issue. * The transaction will trigger a mandatory open offer by ENBD to purchase up to 26% stake from public shareholders. * The transaction also involves the amalgamation of ENBD’s Indian branches with RBL, subject to regulatory approvals. * Post-transaction, ENBD will be classified as the promoter of RBL, increasing RBL’s net worth to approximately ₹44,500 crore. * ICRA will monitor the progress of approvals and ENBD’s involvement in bank operations before taking further rating action. * Instruments affected are Basel III Tier II Bonds of ₹70 crore and Fixed Deposits, both rated [ICRA]AA- and placed on rating watch with positive implications. Certificates of Deposit of ₹6,000 crore and Short Term Fixed Deposit are rated [ICRA]A1+ and are outstanding.
What to do with a filing like this
RBL Bank Limited filed this with the NSE as a statutory disclosure, categorised under credit ratings. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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See the model portfoliosA plain-language summary of a public exchange filing by RBL Bank Limited. Read the original for the full detail.