Emirates NBD Becomes First Bank to Issue Dirham-Bond
- Publish date: Wednesday، 11 January 2023
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Emirates NBD announces pricing of its inaugural 1 billion dirham-denominated bond, the first such issue by a UAE bank.
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This is the first dirham-denominated bond to be issued by a UAE corporation in over 10 years.
The three-year bond saw strong demand with the order book peaking at over 1.65 billion, allowing Emirates NBD to tighten price to a spread of 83 bps over UAE Government Treasuries. Regional investors contributed 72% of the order book while international investors accounted for 28%.
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The issuance is the first dirham-denominated bond by a bank since the creation of a medium-term yield curve by the Ministry of Finance and reinforces Emirates NBD’s commitment to deepening the local currency bond market.
The Group’s bond sale will support the further development of a medium-term bond yield curve and facilitate access to financing for UAE corporations.
Since May, the Ministry of Finance has issued a total of AED 9 billion in bonds in two, three and five-year tenors.
Emirates NBD Capital, HSBC, Industrial and Commercial Bank of China Limited (ICBC) and Mashreq were joint lead managers and joint book runners for the bond.