CBD's EGM approves $2bn bond
Commercial Bank of Dubai (CBD) has received approval from its shareholders to issue $2 billion (Dh7.34 billion) bond.
The bank said in a statement to Dubai Financial Market that its extra ordinary general meeting approved to “set up a programme for the issuance of Notes in aggregate nominal amount of up to $2 billion, or an equivalent amount in other currencies on conditions and duration determined by the Board of Directors.”
The bank didn’t disclose the reason for fund raising and where it will spend.
According to IFR, a Thomson Reuters unit, GCC issuance of conventional bonds and sukuk fell to $29 billion in 2013 from nearly $37 billion in the previous year. It expects debt issuances to surge in 2014 on the back of increased spending on infrastructure and refinancing needs.
In May 2013, the bank issued $500 million conventional bond under its Euro Medium Term Note (EMTN) programme for general corporate purposes.
As it was a debut issurance, the bank had held roadshows in Asia, Europe and the Middle East for the bond which was listed on the Irish Stock Exchange.
“Despite it being CBD's first time issuance in international markets, the coupon of 3.375 per cent was at the lower end of the initial pricing guidance... The issue elicited strong demand from Asia and Europe. The transaction was closed shortly after the initial announcement,” the bank had said in a statement.
The programme was rated A- by Fitch and Baa1 by Moody's. Citigroup, HSBC and National Bank of Abu Dhabi were mandated as joint lead managers to the issue.
Follow Emirates 24|7 on Google News.