Dubai’s Emirates NBD lists $750m bond on Nasdaq Dubai

Dubai-based lender Emirates NBD has listed a $750m bond on Nasdaq Dubai on July 9, 2020.

The capital raised will underpin Emirates NBD’s activities, as it lends support to customers and the UAE economy in rising to the challenge of the Covid-19 pandemic, Dubai Media Office reported.

The perpetual bond is callable after six years and pays a coupon of 6.125 per cent. The issuance attracted international interest with 37 per cent of orders coming from Europe, 33 per cent from the MENA region and 30 per cent from Asia.

The order grew to $2.3bn, which enabled Emirates NBD to tighten the price to 6.125 per cent from the initial 6.5 per cent guidance.

Emirates NBD is the largest financial services bond issuer on the exchange with six issuances listed, valued at $4.1bn.

It was our pleasure to open the market with a bell ringing ceremony at Nasdaq #Dubai Market site. @EmiratesNBD_AE Vice Chairman and Managing Director, Hesham Abdulla Al Qassim rang the market opening bell to celebrate the USD 750 million #bond #listing. Congratulations! pic.twitter.com/5XkjoeXnMN

— Nasdaq Dubai (@NasdaqDubai) July 22, 2020

Emirates NBD is furthering its services regionally and internationally across sectors including retail banking and wealth management, corporate and institutional banking, global markets and treasury, and Islamic banking.

“This bond issue represents the first Additional Tier 1 transaction from an Emerging Market bank since the Covid-19 market disruption. The proceeds will strengthen the Bank’s capital ratios and will help us provide support to retail and business customers across a wide range of activities. Emirates NBD continues to support for the wise actions of the UAE leadership in promoting the development of the economy of the UAE and the wellbeing of its nationals and residents,” said Hesham Abdulla Al Qassim, vice chairman and managing director of Emirates NBD, who rang the bell on Wednesday, July 22.

Essa Kazim, governor of Dubai International Financial Centre and chairman of Dubai Financial Market, said: “The listing of Emirates NBD’s latest bond underlines the capacity of Dubai’s sophisticated exchange infrastructure to collaborate successfully with leading UAE issuers who wish to raise capital efficiently and competitively to fund their growth and development. This collaboration and strategic alignment promotes further economic activity and wealth creation in the UAE and beyond.”

Dubai is the largest venue in the Middle East for dollar denominated debt listings, with a total value of $84.3bn.

Shayne Nelson, group CEO of Emirates NBD, said: “The very positive response from international investors to our latest bond issuance demonstrates their confidence in the performance and strategy of Emirates NBD as we further develop our banking services for business and retail customers. Nasdaq Dubai provides our issuance with excellent global visibility and a respected regulatory framework.”

Earlier this week, Emirates NBD posted a net profit of Dhs4.1bn for the first half of 2020, 45 per cent down year-on-year from Dhs7.48bn for H1 2019.

Read more: Emirates NBD posts 45% dip in net profit for H1 2020