Hesham Abdulla Al Qassim, Vice Chairman and Managing Director of Emirates NBD, rang the market-opening bell at Nasdaq Dubai to celebrate the listing of a $750 million conventional bond issued by Dubai-based Emirates NBD.
Emirates NBD, one of the largest banking groups in the region will use the capital raised on activities that support its customers and the UAE economy in rising to the challenge of COVID-19.
The perpetual bond is redeemable after six years and pays a coupon (interest rate) of 6.125%. The issuance of the instrument attracted strong international interest with 37% of orders coming from Europe, 33% from MENA and 30% from Asia. The order grew to 2.3 billion US dollars, which enabled the bank to tighten the price to 6.125% from the initial 6.5% guidance.
Hesham Abdulla Al Qassim Vice Chairman and MD Emirates NBD
“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.”
Emirates NBD is further developing its services regionally and internationally in sectors including retail banking and wealth management, corporate and institutional banking, global markets and treasury and Islamic banking.
Emirates NBD is the largest financial services bond issuer on the exchange with six issuances listed valued at 4.1 billion dollars.
Abdul Wahed Al Fahim Chairman, Nasdaq Dubai
“As the region’s international financial exchange, Nasdaq Dubai is strengthening its role as a centre for capital-raising by private and public sector issuers from the UAE, the MENA region and globally. We are committed to enhancing our listing processes and post-listing infrastructure to meet the requirements of private and public sector issuers and investors.”
Dubai is the largest venue in the Middle East for USD denominated debt listings, with a total value of 84.3 billion US dollars.
Emirates NBD’s latest 750 million US dollar bond listed on Nasdaq Dubai on July 9, 2020.
