NASDAQ Dubai, the Middle East’s international financial exchange, welcomed the listing today of a one billion US Dollar conventional Tier 1 bond issued by Emirates NBD, one of the region’s leading banking groups.
The bond is the second to be listed by Emirates NBD on the exchange this year, following a 750 million US Dollar listing by the bank in March. It brings the total value of conventional bonds on NASDAQ Dubai to 5.75 billion dollars, supporting its rapid growth as a leading listing venue for fixed income securities.
The latest Emirates NBD issue was 4.9 times oversubscribed. The order book, with 230 orders, had strong international and regional demand. 41% of the bond was allocated to Asian based investors, 36% was allocated to investors based in Europe and 23% was allocated to MENA based investors.
Hesham Abdulla Al Qassim, Vice Chairman Emirates NBD said: “Following the success of our second public bond issue in two months, we are delighted to again list this bond on NASDAQ Dubai. The exchange’s international stature and regulatory structure give strong support to our profile, both in the UAE and overseas. The straightforward listing process makes the exchange attractive to us as a leading international bond issuer”.
Abdul Wahed Al Fahim, Chairman of NASDAQ Dubai, said: “Emirates NBD’s new bond has given further impetus to the growth of the fixed income sector in Dubai and the UAE. As economic expansion continues, we look forward to further capital-raising taking place by a variety of businesses using this asset class, combined with listing on the first class infrastructure that our exchange provides”.
Hamed Ali, Acting Chief Executive of NASDAQ Dubai, said: “NASDAQ Dubai is committed to enhancing the services that we provide for market participants in the conventional bond and Sukuk sectors and to strengthening the growth of the capital markets in Dubai and the UAE. We will maintain our focus on providing an excellent platform for issuers and investors through a growing range of financing options”.
The yield on the HSBC/NASDAQ Dubai Conventional US Dollar NASDAQ Dubai-Listed Bond Index has fallen to 5.07% from 7.90% at the beginning of 2012, reflecting strong appetite among investors for the securities.
