Media ININ Economy We Trust
02-03-2019 Media in\ Abu Dhabi
Emirates Development Bank (EAD), rated AA- by Fitch, has successfully issued a $ 750 million bond with a maturity of 5 years.
Emirates Development Bank, which is wholly owned by the federal government of the United Arab Emirates, has launched its first 750 million dollar bond with a maturity of five years and a return of 3.516% in accordance with international standards.
The bonds were launched under EMTN’s $ 3 billion EMTN program to allow the bank to capitalize on capital markets and strengthen its financing programs in the local market.
The Emirates Bank for Development is the first federal institution to enter international markets under the federal debt framework announced recently in the UAE.
The success of the issuance came after the development of a comprehensive marketing strategy aimed at providing Emirates Bank for Development to global and regional investors.
Senior executives from the bank interviewed investment institutions in Abu Dhabi, Dubai, London, Hong Kong, Singapore, Kuala Lumpur and Taipei.
The bond program attracted strong investor demand, which resulted in more than $ 3.5 billion in bond applications (4.7 times the value of issued bonds), with more than 130 investors.
The investor base was diversified on a geographical level, with investors from the Middle East accounting for 36%, investors from Europe 22% and investors from Asia 42%.
Commenting on the bond issue, Obaid Humaid Al Tayer, UAE Minister of State for Financial Affairs and Chairman of the Board of Directors of Emirates Bank for Development, said: “Emirates Bank for Development has an important role in the UAE financial sector through its specialized services that contribute to the economic growth of the country. And the final result of the issuance process, which clearly confirms the strong market confidence in the credit center of the Emirates Development Bank .. This issuance undoubtedly establishes a solid indicator of the pricing and liquidity enjoyed by the bank, which is important objective for the bank as a A federal entity in the United Arab Emirates issues international bonds.
Emirates NBD Capital acted as the sole financial advisor for the issuance. Emirates NBD Capital and Standard Chartered Bank acted as international coordinators. Emirates NBD Capital, China Commercial Industrial Bank Limited, Dubai Branch / Dubai International Financial Center, Standard Chartered and Union National Bank, as key co-managers of the deal.
“As the sole financial advisor and global coordinator, Emirates NBD Capital is pleased to support the AED 750 million issuance of Emirates Development Bank bonds, representing the first bond issue by a federal agency in the UAE,” said Fahad Al Qasim, CEO of Emirates NBD Capital. The completion of the transaction is a clear demonstration of the strength of the Emirates Bank for Development and its strategic importance to the UAE economy.
“Standard Chartered Bank is pleased to have the opportunity to partner with Emirates Bank for Development in this important transaction,” said Rola Abu Manna, Chief Executive Officer of Standard Chartered Bank in the UAE. “The strong response from investors is a testimony to Emirates Bank’s strong performance and strong track record. Which has its management and pivotal role in the United Arab Emirates.
