First public debt offering from UAE in 2021 supports economic recovery from COVID-19 disruption
Successful issuance reflects market confidence in prominent banking group and Dubai
Bank is largest financial services bond issuer on the exchange with six listed issuances valued at 4.35 billion dollars
The bond is the first public debt issuance from the UAE in 2021. The proceeds raised will assist Emirates NBD, one of the largest banking groups in the region, as it supports customers and the wider UAE economy in achieving comprehensive recovery from the effects of COVID-19.
The five-year bond pays a coupon of 1.638%, the lowest ever coupon on a five-year benchmark transaction from Emirates NBD. The issuance attracted 2.3 billion US dollars in orders from over 140 accounts. Demand was global with 49% of appetite coming from Asia, 35% from Europe, 11% from MENA and 5% from the US and elsewhere.
Hesham Abdulla Al Qassim, Vice Chairman and Managing Director of Emirates NBD,said: "Our successful issuance of the first public bond out of the UAE in 2021 reflects our commitment to support our retail and business customers and strengthen our provision of vital services to enable them to prosper. As the UAE prepares for durable economic recovery from the disruption caused by COVID-19, we are delighted to play a role in promoting economic and social wellbeing in line with the effective policies of the national leadership."
Emirates NBD is further developing its services including retail banking and wealth management, corporate and institutional banking, global markets and treasury and Islamic banking. In particular, it is expanding its pioneering focus on digital banking innovation.
His Excellency Essa Kazim, Governor of Dubai International Financial Centre and Chairman of Dubai Financial Market (DFM), said: "The listing of Emirates NBD’s latest bond on the region’s international financial exchange demonstrates the capacity of the UAE’s leading financial services institutions to collaborate effectively in capital markets transactions that benefit investors and strengthen the economy. Dubai will continue to enhance its listing infrastructure on behalf of UAE and overseas issuers and market participants."
Emirates NBD is the largest financial services bond issuer on Nasdaq Dubai with six listings valued at 4.35 billion dollars.
Abdul Wahed Al Fahim, Chairman of Nasdaq Dubai, said: "Following a record year for new debt listings in 2020, we look forward to hosting many significant listings in 2021 from prominent issuers from the UAE, the wider Middle East and globally. The exchange is positioned to play a growing role in expanding Dubai’s capital markets leadership in the region and connecting a widening range of issuers and investors."
Dubai is the largest venue in the Middle East for USD denominated debt listings, with a total value of 91.1 billion US dollars. Nasdaq Dubai’s new Sukuk and conventional bond listings in 2020 reached an annual record of 19.15 billion US dollars, up 8% from the previous record of 17.7 billion US dollars in 2019.
Shayne Nelson, Group CEO of Emirates NBD, said: "The success of our latest bond issuance and the strong appetite from global investors reflect the sound strategies that Emirates NBD is pursuing and strong market confidence in the economy of Dubai and the UAE. Nasdaq Dubai provides us with excellent links to investors in the region and globally together with high public visibility."
Hamed Ali, Chief Executive of Nasdaq Dubai and Deputy Chief Executive of DFM, said: "We are delighted to provide fresh support for Emirates NBD’s beneficial and innovative financial services activities as the UAE economy prepares for further development in 2021. Dubai’s exchanges are committed to strengthening the Emirate’s role as a centre for capital-raising and promoting regional and international investor flows."
Emirates NBD’s latest 750 million US dollar bond listed on Nasdaq Dubai on January 13,2021.