Dubai International Financial Exchange To List National Bank Of Dubai Bond, In First UAE Issue On Exchange

First Debt Security to be listed on DIFX
Substantial Issue from a Dubai company
Milestone in the progress of the Exchange

The National Bank of Dubai (NBD) will list its recently launched US $750m Floating Rate Note on the Dubai International Financial Exchange (DIFX) on January 18th, 2006, opening a new phase in the exchange’s development.

At the time of issue, 77% was taken up by investors in UK, Europe and Asia, with the remainder being allocated to Middle Eastern investors.

The Floating Rate Note, which matures in December 2010, carries a Coupon of three months USD Libor + 0.35 %.

Commenting on the issue, Mr. Steffen Schubert, CEO of the DIFX said: “This is a significant milestone in the development of the DIFX. Not only is this the first debt instrument to list on this market, it is expected to be the first of a number of issues in 2006 from a United Arab Emirates company. The NBD bond is also likely to be the first of many fixed income securities to be issued on the DIFX.”

Mr. Nasser Al Shaali, COO of the DIFX, added: “The establishment of a strong and liquid debt market will be a catalyst for the economic and financial development of the entire region, allowing companies and governments to raise capital efficiently. It is one of a wide range of attractive asset classes that the DIFX will offer investors.”

The exchange has listed 10 other securities since it launched in September 2005.