Dubai, UAE – Nasdaq Dubai, the leading global financial exchange in the region, welcomed the listing of bonds worth 500 million US dollars, issued by the Arab Bank for Investment and Foreign Trade “Al Bank”.
In a move that marks the bank’s first entry into international capital markets for debt instruments, and at the same time strengthens Dubai’s position as a leading global centre for fixed income issuances.
The bonds were issued under the bank’s medium-term bond program worth US$5 billion.
It has a five-year term and matures on January 29, 2031, with an annual interest rate of 5.113%.
Equivalent to a credit margin of 125 basis points above US Treasury bond yields.
The issuance witnessed strong demand from investors, as the volume of subscription requests exceeded 1.3 billion US dollars.
Reflecting a coverage rate of 2.6 times.
The deal attracted the participation of a wide and diverse base of regional and international investors:
Among them are some of the world’s largest fund managers, banks, private banks, pension funds, and insurance companies.
The issuance authorization was announced on January 16, while pricing took place on January 22.
This followed a series of introductory meetings with investors, held in Hong Kong, Singapore, the United Kingdom and the United Arab Emirates.
The bonds received a credit rating of A from Fitch and are listed on both the international stock market of the London Stock Exchange and Nasdaq Dubai.
To celebrate the listing process, Fouad Mohamed, CEO of the bank, rang the opening bell of the trading session at Nasdaq Dubai.
Along with Hamed Ali, CEO of DFM and NASDAQ Dubai, and a number of senior officials from both sides.
The total outstanding value of debt instruments listed on NASDAQ Dubai exceeded US$147.3 billion.
This reflects the depth and diversity of the base of issuers that rely on Dubai’s international markets for debt instruments, across the sovereign sectors, financial institutions, and the corporate sector.
