Issa Kazim: Dubai is developing a world-class infrastructure and regulatory infrastructure for capital markets
Abdul Wahed Al Fahim: We look forward to strengthening a fruitful framework in cooperation with leading companies
Shane Nelson: The success of the latest bond issuance reflects the confidence of investors in the group
Hamed Ali: We are pleased with the acceleration of issuances on the stock exchange by many institutions
Dubai: «The Gulf»
Shane Nelson, Group CEO of Emirates NBD, rang the opening bell on Nasdaq Dubai to celebrate the listing of a $750 million bond.
This issuance of the Tier 1 Capital Bond strengthens Emirates NBD’s position as the largest listed financial services institution on Nasdaq Dubai through seven issuances worth a total of $5.1 billion. These bonds were issued at a yield of 4.25%, which is the lowest rate of return in the UAE and the second lowest in the Middle East for a Tier 1 bond.
The strong investment demand contributed to the coverage of the issuance by 2.3 times, as investors from the Middle East represented 64% of the requests, compared to 12% for investors from Asia and Europe, 10% for investors from the United Kingdom, and 2% for investors from other regions.
Hisham Abdullah Al Qassim, Vice Chairman and Managing Director of Emirates NBD, said: “This remarkable success of Emirates NBD in issuing and listing its second bond issuance this year reflects the confidence of investors in the fundamentals and future prospects of the bank as one of the largest banking groups in the world. The regional level, as well as their confidence in the economic growth of the UAE. The UAE’s vaccine program and the country’s promptness to deal effectively with the repercussions of the emerging corona virus have enabled business sectors to recover quickly, which puts the national economy in an ideal position to continue its growth in 2021. We, in our role at Emirates NBD, are committed to enabling our customers to seize growth opportunities.” .
Essa Kazim, Governor of the Dubai International Financial Center and Chairman of the Dubai Financial Market Board of Directors, said: “Dubai has succeeded in developing a world-class infrastructure and regulatory infrastructure for capital markets that supports the growth of the financial services sector, not only in Dubai but at the global level. Dubai’s capital markets are committed to strengthening the emirate’s position as a center for issuance, listing and other investment activities regionally and globally. Of course, the listing of Emirates NBD bonds on Nasdaq Dubai, the region’s international stock exchange, is a clear indication of the issuers’ confidence in the capital markets structure and its superior ability to keep pace with the requirements of various institutions in the best possible way.
Abdul Wahed Al Fahim, Chairman of Nasdaq Dubai, said: “Nasdaq Dubai continues to develop its listing capabilities by building on its remarkable successes during 2020, which is a record year in terms of the number of new bond and sukuk listings. We look forward to strengthening Nasdaq Dubai’s fruitful framework through close and continuous cooperation with leading companies and receiving many listings this year for prominent issuers in the UAE, the Middle East and the world at large, as the economic recovery from the repercussions of the emerging Corona virus gains greater momentum.
It should be noted that Dubai is the largest center for listing US dollar-denominated debt instruments in the Middle East, with a total value of $93.126 billion.
Shane Nelson, Group CEO of Emirates NBD, noted that the success of the recent bond issuance reflects investors’ confidence in the sound strategies pursued by the Emirates NBD Group and in the economy of Dubai and the UAE. He added: “Nasdaq Dubai provides us with strong links with investors in the region and the world at large, in addition to a distinguished global presence.”
Hamed Ali, CEO of Nasdaq Dubai and Executive Vice President of the Dubai Financial Market, said: “The new listing by Emirates NBD supports Nasdaq Dubai’s leading position as the preferred listing center for sukuk and bonds in the Middle East. We are pleased with the acceleration of issuances in the stock exchange by many leading institutions, which is in line with our relentless endeavor to enhance the vital role of these institutions in financing economic development efforts in the UAE and the region in general.