Wednesday, May 22, 2013
DUBAI (Zawya Dow Jones)--Emirates NBD (EMIRATES.DFM), Dubai's biggest lender by market value, has launched a $1 billion tier 1 bond, after receiving strong demand, according to a person familiar with the transaction.
The final pricing for the perpetual bond, with no fixed maturity date, tightened to 5.75%, from an earlier guidance of 6%. The first call date is in 2019, and every six years thereafter, one arranging bank said. Orders exceeding $5 billion had been booked earlier in the day.
Bank of America Merrill Lynch, Deutsche Bank, Emirates NBD Capital, HSBC, ING and Morgan Stanley are managing the bond sale, after helping arrange the investor meetings for ENBD in Europe, Asia and the U.A.E. starting on May 20.
Several banks in the region have tapped the debt market this year, taking advantage of relatively low yields to raise capital and better manage their financing costs as investor appetite remains strong. Many U.A.E. banks including ENBD have also repaid in recent months government deposits they received as support in the aftermath of the global financial crisis in 2008.
ENBD in March issued a $750 million, tier 2 bond under the bank's $7.5 billion euro medium term note, or EMTN, program.
Write to Nikhil Lohade at nikhil.lohade@dowjones.com
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(END) Dow Jones Newswires
22-05-13 1226GMT
