The Banking Executive Magazine - January 2023 Issue

Emirates NBD Emirates NBD IS FIRST BANK TO ISSUE DIRHAM-BOND Emirates NBD, one of the leading banks in the MENAT region, has an- nounced the successful pricing of its inaugural AED 1billion dirham-de- nominated bond, the first such issue by a UAE bank. The Group’s bond sale will support the further develop- ment of a medium-term bond yield curve and facilitate access to financ- ing for UAE corporations. The three-year bond saw strong de- mand 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 Treas- uries. Regional investors contributed 72% of the orderbook while interna- tional investors accounted for 28%. The issuance is the first dirham-de- nominated bond by a bank since the creation of a medium-term yield curve by the Ministry of Finance and reinforces Emirates NBD’s commit- ment to deepening the local cur- rency 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. This is the first dirham-denominated bond to be issued by a UAE corporation in over 10 years. Commenting on the bonds’ issuance, His Excellency Mohamed Bin Hadi Al Hussaini, Minister of State for Fi- nancial Affairs, said: “Following the successful launch of the Treasury Bonds Program of the Government of the United Arab Emirates (T-Bonds), which aims to build the UAE Dirham-denominated yield curve and develop the local debt capital market, we are pleased to see strong demand by regional and interna- tional investors on the first dirham- denominated issuance by a local bank. Emirates NBD’s dirham-de- nominated bond issuance is an im- portant milestone in the development of the local currency bond market, and it aligns with the Government’s objectives of strength- ening the local financial markets and developing the investment environ- ment, as well as supporting sustain- able economic growth. We look forward to seeing more local corpo- rations issuing bonds in local cur- rency.” Hesham Abdulla Al Qassim, Vice Chairman and Managing Director of Emirates NBD, said: “We are ex- tremely pleased with the strong de- mand for our inaugural dirham bond, with a range of UAE investors partic- ipating. This bond issue further deep- ens the local currency bond market and will help UAE corporations seek- ing to raise capital. The initiative is a testament to our commitment to- wards supporting the development of dynamic debt and equity capital markets in the UAE. We are proud to have been advisors on some of the largest transactions in the region, de- livering innovative products and services that meet the increasingly sophisticated needs of our clients and global investors. Emirates NBD will continue to play an important role in reinforcing the UAE’s position as the financial center of the region and supporting government initia- tives.” Emirates NBD Capital, HSBC, Indus- trial and Commercial Bank of China Limited (ICBC) and Mashreq were joint lead managers and joint bookrunners for the bond. the BANKING EXECUTIVE 50 ISSUE 169 JANUARY 2023