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The newly appointed Chief Executive Officer of Emirates Development Bank, EDB, Faisal Aqil Al Bastaki, rang the market-opening bell today to celebrate the listing of a US$750 million 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 percent 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 the bank'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 percent to the Middle East, and 22 percent to Europe.
Al Bastaki commented, "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."
In turn, 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."
"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," Hamed Ali, Chief Executive of Nasdaq Dubai, noted.
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 6th March, 2019. The total value of all conventional bonds and Sukuk on Nasdaq Dubai has now reached US$76.28 billion.
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