Emirates NBD $1b Bond Draws Strong Demand

Dubai’s largest lender completed the deal at a spread of 150 basis points over midswaps, the tight end of the 150bps to 155bps guidance indicated earlier on Wednesday.

Dubai: Emirates NBD (ENBD) has priced a $1 billion five-year senior unsecured bond at the tight end of its final pricing guidance, a document from lead managers said on Wednesday, as heavy investor demand helped it secure a better borrowing rate.

Dubai’s largest lender completed the deal at a spread of 150 basis points over midswaps, the tight end of the 150bps to 155bps guidance indicated earlier on Wednesday.

This, in turn, was inside initial price thoughts in the area of 165bps over the same benchmark given on Tuesday. Pricing of the bond tightened on high investor demand, with orders topping $3 billion, according to the arrangers.

This allowed the deal to price without any new issue premium over its existing bonds, according to two Gulf-based bankers away from the deal, who spoke on the condition of anonymity as they weren’t authorised to talk to media. New issue premium is the additional margin which a borrower usually has to offer to incentivise investors to buy the new issue over its previous bonds.

Orig

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