Emirates Development Bank closes a bond offering worth $750 million

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Emirates Development Bank closes a bond offering worth $750 million

He confirmed that the subscription process was well received by investors


Thursday – 29 Shawwal 1442 AH – 10 June 2021 AD Issue No. [
15535]


The Emirates Development Bank has allocated a portfolio of 30 billion dirhams ($8.1 billion) to support priority industrial sectors over a period of five years (Middle East)

Abu Dhabi: «Middle East»

The Emirates Development Bank announced the successful closing of a new bond offering worth $750 million with a five-year maturity at a fixed annual interest rate for the new offering, at 1.639 percent in accordance with the standards approved in the global markets.
The bank said that the bonds are the second issuance in US dollars under the “Medium-Term Issuance” program of the Emirates Development Bank. This is in order to provide an opportunity to benefit from the capital markets, and to enhance the financing programs provided by the bank in the local market.
He added, “The subscription process for the bonds attracted wide demand from investors, as the value of pre-registration requests reached more than 3 billion dollars, more than 4 times the value of the subscription.”
The Emirates Development Bank also announced the organization of virtual promotional exhibitions for local, regional and international investors as part of efforts to introduce the new issuance process, and explained, “The offering attracted a diverse spectrum of investors from around the world, with 34% from the Middle East, 36% from Europe, and 28 The demand for new bonds is a continuation of the success recorded by the first issuance of the bank’s bonds in 2019, which amounted to 750 million dollars, and the percentage of investors’ subscription at that time reached 4.7 times the target value.
On this occasion, Dr. Sultan Al Jaber, Minister of Industry and Advanced Technology and Chairman of the Board of Directors of the Emirates Development Bank, said, “The response of investors to the issuance of Emirates Development Bank bonds is very encouraging, and indicates the great confidence of investors in the bank, which is the first federal institution to enter global markets under the framework of the UAE’s federal debt. After it issued its first bonds in 2019.”
He added, “The qualitative success of Emirates Development Bank’s issuances is a testament to its strong presence in international markets. This step enhances our financing capabilities and progress towards implementing the bank’s new strategy, which aims to support the country’s economic diversification plans by empowering individuals, small and medium enterprises and large companies in priority sectors, as well as developing innovative technologies to contribute to building a knowledge-based economy.”
For his part, Ahmed Al Naqbi, Chief Executive Officer of the Bank, said: “The issuance of bonds worth $750 million supports the Emirates Development Bank’s long-term ambitions and reflects the strength of our credit capabilities and our new strategic roadmap. This issuance will help us mobilize the necessary funding to accelerate work towards achieving our long-term goals in support of the UAE’s economic diversification plans.”
Emirates NBD Capital and Standard Chartered Bank acted as global coordinators, while Goldman Sachs International and Industrial and Commercial Bank of China Limited Dubai Branch acted as joint lead managers for the transaction.
The bank has allocated a portfolio of 30 billion dirhams ($8.1 billion) to support priority industrial sectors over a period of five years, which will contribute to financing more than 13.5 thousand small and medium companies and creating 25,000 jobs.


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