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Emirates Development Bank closes $750m five-year bond

Abu Dhabi: Emirates Development Bank (EDB), financial enabler of the country’s economic diversification and industrial transformation, has closed its $750 million five-year bond issue, priced at a fixed re-offer yield of 1.6 per cent per annum.

This was the second transaction issued under EDB’s $3 billion Euro Medium Term Note (EMTN) programme — part of the bank’s mandate to boost its accessibility to capital markets and strengthen its funding profile.

The bond issue received a strong investor appetite, resulting in the order book reaching over $3 billion (4 times oversubscribed). EDB also announced that it hosted virtual roadshows for local, regional and international investors as part of its outreach on the transaction

The bank’s debut $750 million bond, issued in 2019, also received an overwhelming response from investors.

“This bond issue enhances our financing capabilities and progress towards implementing the bank’s new strategy, which aims to support the country’s economic diversification plans empowering individuals besides playing a key role in the adoption of advanced technologies to contribute towards a knowledge-based economy,” said Dr Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and Chairman of EDB.

Ahmed Mohamed Al Naqbi, Chief Executive Officer of EDB, said: “The $750 million bond issue is an endorsement of EDB’s long-term prospects and reflects our strong credit profile and new strategic roadmap. This transaction helps us mobilise capital to accelerate our long-term goals of supporting the UAE’s economic diversification plans.”