Dubai firm buys 2.87% stake in ICICI Bank

Dubai International Capital (DIC), the investment arm of Dubai Holding, has bought 2.87% stake in ICICI Bank, the country's second largest bank.

Dubai International Capital's investment in the Indian bank follows its recent purchase of 3.12% stake in European Aeronautic Defence and Space Company EADS, the parent company of aircraft manufacturer Airbus.

"The investment allows DIC to become one of the leading shareholders in the company," DIC said in a statement. However, it did not disclose the value of its investment.

The Dubai firm may have paid $717 million for the stake acquired via an American depository receipts (ADR) issue open to foreign investors.

"The strategic investment in ICICI supports the global diversification and growth mandate for DIC and its parent company, Dubai Holding," Sameer Al Ansari, chief executive officer, DIC, said.

ICICI Bank had assets of $79 billion at the end of March 31. It raised $4.9 billion in the country's biggest share sale open to domestic and foreign investors in June.

Singapore government investors held about 9.7% stake in ICICI before the latest share offering and had the approval to raise their stakes substantially.

DIC aims to have assets worth $25 billion in the next two years.