The Emirates Development Bank announced today the successful closing of a new bond offering worth $750 million with a five-year maturity at a fixed annual interest rate of 1.639% for the new offering in accordance with the standards approved in the global markets.
The bonds are considered the second issuance in US dollars under the “Medium-Term Issue” (EMTN) program of the Emirates Development Bank, with the aim of providing an opportunity to benefit from the capital markets, and to enhance 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 (EMTN) program 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 attracted wide response 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.
The offering attracted a diverse group 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.
The Minister of Industry and Advanced Technology and Chairman of the Board of Directors of the Emirates Development Bank, Dr. Sultan bin Ahmed Al Jaber, 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 bond 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, the bank’s CEO, Ahmed Mohamed Al Naqbi, 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. In order to achieve our long-term goals in support of the economic diversification plans in the UAE.”
Emirates NBD Capital and Standard Chartered Bank acted as global coordinators, while Goldman Sachs International and ICBC Dubai branch acted as joint lead managers for the deal.
Follow our latest local and sports news and the latest political and economic developments via Google news