ABU DHABI 3 March 2019: Emirates Development Bank (EDB), rated AA- by Fitch, has successfully closed a US$750 million 5-year senior bond.
A development bank fully owned by the UAE federal government, EDB, launched its debut $750m five-year bond issue at 3.516 per cent coupon in the Regulation S markets.
The inaugural USD transaction was issued under EDB’s newly established US$3 billion Euro Medium Term Note (EMTN) programme, to provide the bank accessibility to capital markets and further strengthen its funding profile, EDB said in a statement to Wam.
First Federal Entity
EDB is the first federal entity to access the international capital markets under the UAE’s recently announced federal debt framework.
Emirates NBD Capital acted as Sole Financial Advisor and a Joint Global Coordinator on the transaction. Standard Chartered Bank also acted as Joint Global Coordinators. Whereas, Emirates NBD Capital, Industrial and Commercial Bank of China Limited, Dubai (DIFC) Branch, Standard Chartered Bank and Union National Bank acted as Joint Lead Managers.
The success of the transaction came on the back of an extensive marketing strategy aimed at introducing EDB to international and regional investors.
The management team, met with institutional investors in Abu Dhabi, Dubai, London, Hong Kong, Singapore, Kuala Lumpur and Taipei.
Investors showed a strong appetite for Emirates Development Bank’s credit offering, resulting in the order book reaching USD3.5bn (close to 4.7 times oversubscription), with demand from over 130 investors. The investor base was diverse with 36% representing the Middle East, 22% from European markets, and 42% representing Asian markets.
Obaid bin Humaid Al Tayer, Minister of State for Financial Affairs, and Chairman of the EDB Board of Directors, commented: “EDB is a key player in the UAE’s financial sector, through its introduction of specialized services to grow the nation’s economy. We are pleased with the strong investor demand and the results of the transaction – – highlighting the market’s strong endorsement of EDB’s credit profile. This deal establishes a tightly priced and liquid benchmark for EDB, and formed an important objective as the first Federal Entity to issue bonds from the UAE.”