World Markets
FAB

Dubai's Emirates NBD sells $750 million in AT1 bonds at 4.25%

Credit: REUTERS/HAMAD I MOHAMMED

Emirates NBD, Dubai's largest lender, sold $750 million in Additional Tier 1 bonds on Thursday after receiving more than $1.75 billion in orders for them, a document showed.

By Yousef Saba

DUBAI, May 20 (Reuters) - Emirates NBD, Dubai's largest lender, sold $750 million in Additional Tier 1 bonds on Thursday after receiving more than $1.75 billion in orders for them, a document showed.

It launched the bonds at a yield of 4.25% after giving initial price guidance of around 4.5%, the document from one of the banks on the deal showed.

Emirates NBD Capital, First Abu Dhabi Bank FAB.AD, JPMorgan JPM.N, HSBC HSBA.L, NCB Capital 1180.SE and Standard Chartered STAN.L arranged the deal.

AT1 bonds, the riskiest debt instruments banks can issue, are designed to be perpetual in nature but issuers can call them in after a specified period.

ENBD's issuance will be non-callable for six years.

The deal follows several other AT1 deals from the region this year, including Dubai Islamic Bank's $500 million sukuk issue last month, which set a record low rate for the perpetual debt instrument out of the Gulf, at 3.375%.

ENBD sold $750 million in five-year bonds in January. It last sold AT1 bonds last summer, raising $750 million at 6.125% - the same rate of its prior AT1 bonds issued in March 2019.

(Reporting by Yousef Saba and Davide Barbuscia; Editing by Jacqueline Wong and Alexander Smith)

((Yousef.Saba@thomsonreuters.com; +971562166204; https://twitter.com/YousefSaba))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

FAB JPM

Latest World Markets Videos

China Plans to Ban Foreign IPO Loophole

Dec 01, 2021

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More