Dubai: Emirates NBD, the UAE's largest bank by assets, yesterday announced full settlement of $750 million (Dh2.76 billion) tier 1 notes (bonds) that are due to mature this year.
The full payment to the bondholders means that the bank has met most of its Dh3.017 billion debt obligations maturing this year.
Following the announcement of the third quarter results, Rick Pudner, chief executive of Emirates NBD told reporters that the bank's debt maturity profile is well within its funding capacity.
Redemption
Emirates NBD announced the bond repayment yesterday through a brief statement to Nasdaq Dubai.
"Emirates NBD confirms redemption and payment to all investors under bond XS0237182513 for value (as of) 6 December 2010," the statement said.
Following the announcement released by the bank Nasdaq Dubai yesterday notified the market that the securities of the company will be removed from the official list prior to commencement of trading today .
Emirates NBD raised $410 million (Dh1.5 billion) last week through a multi-currency loan structured around its portfolio of syndicated loans to corporates.
The loan, priced at a margin of 1.75 per cent above the applicable reference rates, was fully subscribed by JP Morgan.
Analysts said the successful fund raising by the bank at competitive rates and meeting the debt maturities on time is expected to boost investor confidence in future debt issues by the bank and other Dubai based companies.
"The recent debt issue by Emirates NBD at very competitive rates and the repayment of its maturing debt on time have reinforced its credit standing among other UAE banking institutions and we expect to see further improvement in debt pricing," said an investment banker.
