Emirates NBD doubles bond size

Dubai-based Emirates NBD bank has doubled its 5-year Kangaroo bond size to Australian $400 million (Dh1.36 billion) following strong demand.

The bank said the bond, maturing in 2019, is part of its A$1.5 billion Debt Issuance Programme.

The notes are rated Baa1 by Moody’s and A+ by Fitch and pay a fixed coupon rate of 5.75 per cent. ANZ, BNP Paribas, HSBC and Emirates NBD Capital were joint lead managers on the transaction.

The bank previously issued Kangaroo bond of A$250 million in 2006, the first Middle East based institution to issue an Australian dollar denominated transaction, ENBD said in a statement.

The bank held investor meetings in the first week of April in Sydney, Melbourne, Hong Kong and Singapore. On April 29, 2014, following the release of Emirates NBD’s Q1 2014 financial results, it was announced that the bank planned to sell at least A$200 million of 5-year notes. Following very strong demand, price guidance was tightened and the deal was upsized to A$400 million. Investors reacted positively with a final order-book of A$515 million across 93 orders.

The issue saw diverse distribution by geography with 32 per cent of orders coming from Singapore, 25 per cent from Hong Kong, 24 per cent from Australia, 10 per cent from Mena and 9 per cent from Europe.

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