Dubai – Mubasher: Emirates NBD priced its inaugural AED1 billion dirham-denominated bond, making it the first UAE lender to issue this type of instrument after the Gulf nation had established the yield curve.

The issuance, which is the first dirham-denominated bond by a UAE corporation in over 10 years, aligns with the bank’s commitment to fostering the local currency bond market, WAM news agency reported.

In addition, the group's bond sale aims to back the further development of a medium-term bond yield curve and provide the UAE corporations with smooth access to financing.

Meanwhile, the three-year bond registered strong demand, with the order book exceeding 1.65 billion, which allowed the bank to tighten price to a spread of 83 basis points (bps) over the government's treasuries.

Regional investors accounted for 72% of the order book, while the remaining 28% was contributed by international investors.

Emirates NBD Capital, HSBC, Industrial and Commercial Bank of China Limited (ICBC), as well as the listed Mashreq Bank acted as the lead managers and joint bookrunners for the bond.

Since May 2022, the UAE’s Ministry of Finance has issued a total of AED 9 billion in bonds over two-, three-, and five-year tenors.

Mohamed Hadi Al Hussaini, Minister of State for Financial Affairs, commented: "Emirates NBD's dirham-denominated bond issuance is an important milestone in developing the local currency bond market.”

“It aligns with the government's objectives of strengthening the local financial markets, developing the investment environment, and supporting sustainable economic growth," Al Hussaini noted.

Hesham Abdulla Al Qassim, Vice Chairman and Managing Director of Emirates NBD, said: "This bond issue further deepens the local currency bond market and will help UAE corporations seeking to raise capital."

Last December, Emirates NBD inaugurated the first non-Saudi bank branch in Makkah in line with its expansion plans to open 20 branches across the Kingdom.

In the first nine months (9M) of 2022, the DFM-listed bank generated AED 9.07 billion net profits attributable to the owners, higher by 25% year-on-year (YoY) than AED 7.28 billion.