ABU DHABI: Emirates Development Bank, rated AA- by Fitch, has successfully closed a $750 million five-year senior bond, according to statement released on WAM on Saturday
A development bank fully owned by the UAE federal government, Emirates Development Bank (EDB), launched its debut $750m five-year bond issue at 3.516 per cent coupon in the Regulation S markets.
The inaugural USD transaction was issued under EDB’s newly established $3 billion Euro Medium Term Note (EMTN) programme, to provide the bank accessibility to capital markets and further strengthen its funding profile, EDB said in a statement on Saturday.
EDB is the first federal entity to access the international capital markets under the UAE’s recently announced federal debt framework.
The order book reached $3.5bn, close to 4.7 times oversubscribed, with demand from over 130 investors. The investor base was diverse with 36 per cent representing the Middle East, 22 per cent from European markets, and 42 per cent representing Asian markets.
Obaid Bin Humaid Al Tayer, Minister of State for Financial Affairs, and Chairman of the EDB Board of Directors, commented: “EDB is a key player in the UAE’s financial sector, through its introduction of specialised services to grow the nation’s economy. We are pleased with the strong investor demand and the results of the transaction — highlighting the market’s strong endorsement of EDB’s credit profile. This deal establishes a tightly priced and liquid benchmark for EDB, and formed an important objective as the first Federal Entity to issue bonds from the UAE.”
Emirates NBD Capital acted as Sole Financial Advisor and a Joint Global Coordinator on the transaction. Standard Chartered Bank also acted as Joint Global Coordinators. Whereas, Emirates NBD Capital, Industrial and Commercial Bank of China Limited, Dubai (DIFC) Branch, Standard Chartered Bank and Union National Bank P.J.S.C. acted as Joint Lead Managers on the transaction.