The bonds are considered the second issuance in US dollars under the “Medium-Term Issuance” (EMTN) program of the Emirates Development Bank, with the aim of providing an opportunity to benefit from the capital markets and enhancing the financing programs provided by the bank in the local market.
The closing of the offering coincides with the bank’s obtaining a credit rating of “AA-” with a stable outlook from Standard & Poor’s and Fitch. The Emirates Development Bank’s $3 billion Medium Term Issuance Program (EMTN) has also been rated ‘AA-‘ by Fitch. This is a testimony of confidence in the new strategic direction of the bank in support of the economic diversification plan of the UAE.
The subscription process for the bonds was very popular with 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. The offering attracted a diversified spectrum of investors from all over the world, with 34% from the Middle East, 36% from Europe, 28% from the Asian market and 2% from the US overseas market. 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 bin Ahmed 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 federal debt. of the UAE after it issued its first bonds in 2019.”
He added: “The qualitative success of the Emirates Development Bank’s issuances is a testament to its strong presence in international markets, as this step enhances our financing capabilities and progress towards implementing the bank’s new strategy, which aims to support economic diversification plans in the country by empowering individuals, small and medium enterprises, and large companies in sectors. priority, as well as developing innovative technologies to contribute to building a knowledge-based economy.”
For his part, Ahmed Mohamed Al Naqbi, Chief Executive Officer of the Bank, said: “The issuance of a $750 million bond supports the Emirates Development Bank’s long-term ambitions and reflects our strong credit capabilities and our new strategic roadmap. This issuance will help us mobilize the necessary funding to accelerate the pace of work in order to achieve our long-term goals in support of the economic diversification plans in the UAE.”