Mubasher: CEO of Emirates Development Bank (EDB) Faisal Aqil Al Bastaki has rung the market-opening bell on Tuesday to celebrate the listing of $750 million conventional bond issue on Nasdaq Dubai, according to a recent statement.
It is noteworthy that the EDB’s five-year instrument was the first ever issued by a UAE federal entity with a coupon of 3.516% that was approximately five times oversubscribed and was issued under the UAE bank’s new $3 billion Euro Medium Term Note (EMTN) programme, the statement added.
This listing boosts EDB’s specialised activities aimed at expanding the economy of the UAE by offering the UAE nationals financing solutions for housing, in addition to banking services to the small and medium enterprise (SME) sector.
Allocation of EDB’s bond was well diversified with 42% to Asian investors, 36% to the Middle East, while the remaining 22% was to Europe.
“Our listing on Nasdaq Dubai as the region’s international financial exchange provides our successful inaugural bond issuance with global visibility and a well-regulated listing environment. The launch of the first federal bonds follows a strong year in 2018, when EDB grew its services and capital lent, across its home finance and SME finance businesses,” the newly appointed CEO of the bank Al Bastaki said.
Chairman of Nasdaq Dubai Abdul Wahed Al Fahim commented: “EDB’s bond listing underlines Nasdaq Dubai’s role as a leading listing venue for a wide range of UAE, regional and international government and public sector issuers as well as private sector companies.”
It is noteworthy that the UAE’s Public Debt Law of 2018 enabled the federal government to issue sovereign debt for the first time.
