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26 February 2024

ENBD raises A$450m via longest kangaroo bond from Mideast

Emirates NBD raised A$400 million from its last kangaroo bond issue in April 2014. (File)

By Reuters

Emirates NBD, Dubai's largest lender, priced an A$450 million ($348 million), seven-year kangaroo bond issue on Wednesday, the longest maturity from a Middle Eastern issuer in that market to date.

The bond was priced with a 4.75 per cent coupon and at a spread of 225 basis points over swaps, the rate at which the deal was initially marketed on Tuesday, a document from lead managers showed. The reoffer price was 99.033.

The deal was arranged by Deutsche Bank, Emirates NBD Capital, NAB and Nomura.

ENBD raised A$400 million from its last kangaroo bond issue in April last year. That 5.75 per cent, five-year bond  priced at par for a spread of 241.5 bps over the March 2019 Australian government bond. It is trading currently at 4.197 per cent.

Issuance of kangaroo bonds, Australian dollar bonds issued by foreign companies in the Australian market, is surging this year after record volumes in 2014. Emirates NBD's offer follows deals since 2013 from other Gulf-based lenders including First Gulf Bank, Abu Dhabi Commercial Bank and National Bank of Abu Dhabi.