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EDB rated ‘AA-’ by S&P Global Ratings and Fitch with Outlook Stable
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The bond issue was subscribed 4 times, resulting in the order book reaching over US$3 billion
Emirates Development Bank (EDB), a key financial enabler of the country’s economic diversification and industrial transformation agenda, has successfully closed its $750 million five-year bond issue, priced at a fixed re-offer yield of 1.639% per annum in the Regulation S markets, a press release issued by the bank said.
This was the second USD transaction issued under EDB’s US$3 billion Euro Medium Term Note (EMTN) programme — part of the bank’s mandate to boost its accessibility to capital markets and strengthen its funding profile.
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 $3bn EMTN programme has been assigned a ‘AA-’ issuer rating by Fitch.
The ratings are a major endorsement of EDB’s new strategic mandate to support the UAE’s economic diversification plan.
The bond issue was oversubscribed four times, resulting in the order book reaching over US$3 billion.
The EDB also announced that it hosted virtual roadshows for local, regional and international investors as part of its outreach on the transaction.
The investor base was diverse with 34 percent representing the Middle East, 36 percent from the European markets, 28 percent representing the Asian markets, and 2 percent from the US offshore market.
The bank’s debut $750 million bond, issued in 2019, also was oversubscribed 4.7 times.
“The investor response to the bond’s issue is very encouraging and indicative of the strong market appetite and confidence in the bank,” Dr Sultan Ahmed Al Jaber, minister of industry and advanced technology and chairman of EDB, said. “EDB was the first UAE federal entity to access the global capital markets under the federal debt framework when it issued its first bond in 2019”.
Ahmed Mohamed Al Naqbi, chief executive officer of EDB, said: “The $750 million bond issue is an endorsement of EDB’s long-term prospects and reflects our strong credit profile and new strategic roadmap”.
EDB has allocated a portfolio of Dh 30 billion to support priority industrial sectors over a period of five years, which will contribute to financing more than 13,500 SMEs and creating 25,000 jobs.
