"Nasdaq Dubai" Welcomes the first listing of bank bonds "The bank" Worth 500 million dollars
DUBAI, 10 FEBRUARY/WAM/ Nasdaq Dubai, the leading international financial exchange in the region, welcomed the listing of bonds worth US$500 million, issued by the Arab Bank for Investment and Foreign Trade “Al Masraf”, in a step that constitutes the bank’s first entry into the international capital markets for debt instruments, and at the same time strengthens Dubai’s position as a leading global center for fixed income issuances.
The bonds were issued as part of the bank’s medium-term bond program worth $5 billion, extending for five years and maturing on January 29, 2031, with an annual interest rate of 5.113%, equivalent to a credit margin of 125 basis points over US Treasury bond yields.
The issuance witnessed strong demand from investors, as the volume of subscription applications exceeded 1.3 billion US dollars, reflecting a coverage ratio of 2.6 times.
The deal attracted the participation of a broad and diverse base of regional and international investors, including some of the largest global fund managers, banks, private banks, pension funds, and insurance companies.
The authorization for the issue was announced on January 16, while pricing took place on January 22, following a series of introductory meetings with investors, held in Hong Kong, Singapore, the United Kingdom, and the United Arab Emirates.
The bonds received an A credit rating from Fitch, and are listed on both the London Stock Exchange and Nasdaq Dubai.
To celebrate the listing process, Fouad Mohammed, CEO of the bank, rang the opening bell of the trading session at Nasdaq Dubai, along with Hamed Ali, CEO of the Dubai Financial Market and Nasdaq Dubai, and a number of senior officials from both sides.
Fouad Mohamed said that this strong demand from investors reflects the growing level of confidence in the bank’s renewed strategic direction, and in the strength of its management team, in addition to the noticeable improvement in its performance and financial indicators during the past twelve months. The bank’s entry into the international capital markets coincides with the golden jubilee year, constituting a turning point that allows the bank to expand the scope of its global presence, reach a diverse base of international investors, and strengthen its established relationships with its esteemed regional partners.
For his part, Hamed Ali said that the first listing of the bank’s bonds reflects the strong and sustainable confidence of investors in high-quality regional issuers, and confirms the continuous development of debt markets in the UAE. The high demand for this issuance highlights the quality of creditworthiness and the attractiveness of Dubai as a preferred destination for listing international debt instruments, and enhances the role of Dubai markets in supporting regional issuers’ access to global capital.
The total outstanding value of debt instruments listed on Nasdaq Dubai exceeded US$147.3 billion, which reflects the depth and diversity of the issuer base that relies on Dubai’s international markets for debt instruments, across sovereign sectors, financial institutions, and the corporate sector.
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