Shane Nelson, Group CEO of Emirates NBD, rang the opening bell on Nasdaq Dubai yesterday 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 7 issuances totaling $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.
Strong investment demand covered the issuance by 2.3 times, with investors from the Middle East accounting for 64% of orders, 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 issuance of bonds this year reflects the confidence of investors in the fundamentals and future prospects of the bank as one of the largest banking groups at the regional level. As well as their confidence in the economic growth of the UAE.
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.
Dubai is the largest center for listing dollar-denominated debt instruments in the Middle East, with a total value of $93.126 billion.
Hamed Ali, CEO of Nasdaq Dubai and Executive Vice President of Dubai Financial Market, said: “The listing reinforces 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 on the stock exchange by many of the leading institutions.”
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