Emirates NBD is first bank to issue Dirham-bond

Emirates NBD is first bank to issue Dirham-bond

- Emirates NBD successfully launches a three-year AED 1 billion bond

- The three-year bond was priced at a spread of 83 bps over UAE Government Treasuries

- The dirham-denominated bond underscores Emirates NBD’s commitment to supporting the UAE Ministry of Finance’s efforts to develop the AED bond market

Dubai: Emirates NBD, one of the leading banks in the MENAT region, has announced the successful pricing of its inaugural AED 1billion dirham-denominated bond, the first such issue by a UAE bank. 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.

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 orderbook while international investors accounted for 28%.

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. Since May, the Ministry of Finance has issued a total of AED 9 billion in bonds in two, three and five-year tenors.