Emirates NBD launched a $500 million, Tier 1 capital-boosting bond at 6.375 per cent.

The order book closed in excess of $1.3 billion and the sale was arranged by Citigroup, Commerzbank, Deutsche Bank, Morgan Stanley, Standard Chartered and Emirates NBD’s own investment banking arm .

Emirates NBD 2014 Tier 1 Limited has successfully ,said the bank.

The bank also said in a statement that the notes would pay a coupon of 6.375 per cent and are callable by the issuer after six years and every coupon date thereafter.

Shayne Nelson, Group CEO of Emirates NBD, said with this $500 million capital issue the lender has been able to fully replace the Tier 2 issue that was repaid in July.

“This issue improves not only the quality of capital but also the cost efficiency of the capital base. We were extremely pleased with feedback from our investor meetings in the Middle East, Asia and Europe.


Investors appreciate the real progress we have made on diversifying income streams, addressing the legacy NPL position, improving capital efficiency and strengthening liquidity.”

The offer is rated Baa1 by Moody’s and A-plus by Fitch.