Dubai, UAE– Emirates NBD has announced the successful pricing of its inaugural AED1 billion ($272 million) dirham-denominated bond, the first such issue by a UAE bank.
The group’s bond sale will support the further development of a medium-term bond yield curve and facilitate access to financing for UAE corporations, the bank said.
The three-year bond saw strong demand, with the order book peaking at over AED1.65 billion, allowing Emirates NBD to tighten price to a spread of 83 bps over UAE Government Treasuries.
Regional investors contributed 72 percent of the orderbook, while international investors accounted for 28 percent.
The issuance is the bank’s first dirham-denominated bond since the Ministry of Finance created a medium-term yield curve.
Since May, the Ministry of Finance has issued a total of AED9 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.
