Emirates Bank closes $500m bond issue

Dubai: Emirates Bank International has closed its debut subordinated Lower Tier II bond issue. The size of the bond is $500 million and it has an end-maturity of 10 years, callable after 5 years.

The lead managers of the issue were Credit Suisse and HSBC, and it was very well received by investors.

At $500 million, this equals the largest size achieved by a GCC bank on a Lower Tier II issue. The bond was sold to investors at a margin of 63 basis points over US dollar Libor, which is the lowest margin ever achieved by a GCC bank on a Lower Tier II issue. 60 per cent of the issue was placed with institutional investors in Europe and Asia.

John Eldredge General Manager Treasury said: "Emirates Bank fully achieved its objectives for this transaction. While the bank enjoys very comfortable levels of capitalisation, it took this opportunity to strengthen its capital base ahead of expected ongoing asset growth at very cost-effective pricing."

Tony Bush Division Head International Banking & Syndications said: "By issuing Lower Tier II, the bank was able to raise its profile in debt capital markets and reach out to new investors from Europe, Asia and the Middle East."

Ahead of issuance of the bond, senior management from Emirates Bank, headed by CEO Rick Pudner, embarked upon a comprehensive roadshow that visited key financial centres in Asia and Europe.