Dubai: The Commercial Bank of Dubai has made a return to the capital markets for the first time since 2015, through a Dh600 million six-year bond issue. More than 100 investors participated in the offer, with the yield set at 6 per cent - the lowest from a Dubai bank to date on a Basel III compliant AT (Additional Tier) 1 bond.
The 6 per cent also compares favorably with recent issuances in the region. The deal was completed on October 21, and the final order book saw a 61 per cent allocation made to investors from MENA, 24 per cent to Europe, and 13 per cent to investors from Asia.
Dr. Bernd van Linder, CEO, said, “The successful completion of this inaugural transaction is testimony to the bank’s strategy and execution over recent years. The issuance will enable the bank to further support local UAE businesses now and into the future."
Standard Chartered Bank and Citibank acted as structuring agents and joint global coordinators, while Standard Chartered Bank, Citibank, Barclays, Emirates NBD, First Abu Dhabi Bank and Nomura acted as joint lead managers of the bond. The bonds are listed on the Euronext Dublin and Nasdaq Dubai.
It was on October 12 that CBD announced a new mandate for a Reg S only Additional Tier 1 Perpetual Non-Call six-year bond. Darren Clarke, Chief Financial Officer, said: “The price achieved with the transaction has met all our expectations. The issuance has introduced Additional Tier 1 capital to the bank further strengthened our capital profile.”