Dubai-based lender Emirates NBD has priced its three-year AED 1 billion ($272 milllion) dirham-denominated bond at a spread of 83 basis points (bps) over UAE government treasuries, in its first public debt sale of the year.

In a statement issued on Wednesday, Emirates NBD said the issuance, the first such by the lender, will "support the further development of a medium-term bond yield curve and facilitate access to financing for UAE corporations".

Regional investors contributed 72% of the orderbook of 1.65 billion, while international investors accounted for 28%, it said.

The issuance is the first dirham-denominated bond by a bank since the creation of a medium-term yield curve by the UAE's finance ministry. Since May, the ministry has issued a total of AED9 billion in bonds in two, three and five-year tenors.  This is the first dirham-denominated bond to be issued by a UAE corporation in over 10 years, according to the statement.

Emirates NBD, part owned by the Investment Corporation of Dubai, the government's investment arm, sold $500 million in a five-year bond issue in October which attracted more than $1 billion in orders.

Emirates NBD Capital, HSBC, Industrial and Commercial Bank of China Limited (ICBC) and Mashreq were joint lead managers and joint bookrunners for the bond.

(Reporting by Brinda Darasha; editing by Seban Scaria)