EDB is first UAE federal entity to issue a bond
Dubai – The newly appointed Chief Executive Officer of Emirates Development Bank (EDB), Mr. Faisal Aqil Al Bastaki, rang the market-opening bell today to celebrate the listing of a 750 million US dollar conventional bond on Nasdaq Dubai.
EDB’s bond was the first ever issued by a UAE federal entity. The five-year instrument with a coupon of 3.516 per cent was nearly five times oversubscribed and was issued under the bank’s new three billion dollar Euro Medium Term Note (EMTN) programme.
The listing supports EDB’s specialised activities aimed at expanding the UAE’s economy including providing financing solutions for housing for UAE nationals, as well as banking services to the SME sector.
Allocation of EDB’s bond was well diversified with 42 percent to Asian investors, 36 per cent to the Middle East and 22 per cent to Europe.
Mr. Faisal Aqil Al Bastaki, Chief Executive Officer of EDB said: “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 availability of a suite of products for Emirati nationals combined with the launch of the bonds, allows us to build depth of services for investors, while ensuring access to stable funding for the success of our nation.”
Abdul Wahed Al Fahim, Chairman of Nasdaq Dubai, said: “We are delighted to offer support for the valuable work carried out by EDB for individuals and enterprises across the country, by providing our listing infrastructure for this issuance. 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.”
Hamed Ali, Chief Executive of Nasdaq Dubai, said: “The listing on Nasdaq Dubai of the first bond to be issued by a UAE federal entity reflects the ability of the nation’s financial services institutions to collaborate to make effective use of the capital markets. The exchange is committed to providing a first class listing environment including post-listing services for EDB and as well as all its issuers.”
The UAE’s Public Debt Law of 2018 enabled the federal government to issue sovereign debt for the first time.
EDB’s bond listed on Nasdaq Dubai on March 6, 2019. The total value of all conventional bonds and Sukuk on Nasdaq Dubai has now reached 76.28 billion US dollars.
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About Emirates Development Bank:
Emirates Development Bank was established under Federal Law by Decree No. 07 of 2011 issued by His Highness Sheikh Khalifa bin Zayed Al Nahyan, President of the UAE. It became operational in June 2015 under the patronage of His Highness Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs. The Bank launched its second branch in Dubai to provide comprehensive and easily accessible banking services to more UAE nationals, an important strategic step within the overall vision of the Bank and in pursuit of its objectives to reach all customers throughout the United Arab Emirates. For more details, visit www.edb.ae.
About Nasdaq Dubai
Nasdaq Dubai is the international financial exchange serving the region between Western Europe and East Asia. It welcomes regional as well as global issuers that seek regional and international investment. The exchange currently lists shares, derivatives, Sukuk (Islamic bonds), conventional bonds and Real Estate Investment Trusts (REITS).
The majority shareholder of Nasdaq Dubai is Dubai Financial Market with a two-thirds stake. Borse Dubai owns one third of the shares. The regulator of Nasdaq Dubai is the Dubai Financial Services Authority (DFSA). Nasdaq Dubai is located in the Dubai International Financial Centre (DIFC).
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