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EDB has successfully closed its $750-million five-year bond issue, which was four times oversubscribed
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The bonds were priced at a fixed re-offer yield of 1.639% per annum in the Regulation S markets
Emirates Development Bank has successfully closed its $750-million five-year bond issue, said a statement from the bank on Wednesday, June 8.
The bonds were priced at a fixed re-offer yield of 1.639% per annum in the Regulation S markets, the statement added.
This was the second dollar transaction issued under EDB’s $3 billion Euro Medium Term Note program — part of the bank’s mandate to boost its accessibility to capital markets and strengthen its funding profile, it said in the statement.
The bond issue follows EDB receiving “AA-” long-term issuer credit ratings with Outlook Stable by S&P Global Ratings and Fitch. The bank’s $3-billion EMTN program has been assigned a “AA-” issuer rating by Fitch.
The bond issue saw the order book reaching over $3 billion, which is an oversubscription of four times. The investor base was diverse, with 34% representing the Middle East, 36% from the European markets, 28% representing the Asian markets, and 2% from the US offshore market, said the bank in its statement.
Emirates NBD Capital and Standard Chartered Bank acted as Global Coordinators on the transaction while Goldman Sachs International and Industrial and Commercial Bank of China Limited acted as the Joint Lead Managers on the transaction, said EBD.
The bank’s debut $750-million bond, issued in 2019 was oversubscribed 4.7 times.