x Abu Dhabi, UAEWednesday 26 July 2017

Emirates NBD plans bond sale to boost capital

Emirates NBD plans to tap global debt markets for its first capital-boosting bond issue, as Gulf banks take advantage of tight pricing and high investor demand to shore up capital ratios.

Emirates NBD, Dubai's biggest lender, plans to tap global debt markets for its first capital-boosting bond issue, as Gulf banks take advantage of tight pricing and high investor demand to shore up capital ratios.

ENBD, which has already raised Tier 2, or supplementary capital, this year, has hired six banks, including its own investment banking unit, to arrange a Tier 1 bond issue, lead managers arranging the deal said on Thursday.

Tier 1 capital is a lender's core capital as defined under the Basel banking industry rules, and a key measure of its financial strength. Gulf banks will need to comply with tighter Basel III global standards for core capital, which will be introduced gradually over coming years.

ENBD's Tier 1 solvency ratio stood at 13.5 percent of assets at the end of March.

The company plans to meet investors on roadshows in Asia, London and the United Arab Emirates between May 20 and May 22 ahead of issuing the bond, a statement from arranging banks said.

Bank of America Merrill Lynch, Deutsche Bank , HSBC Holdings, ING and Morgan Stanley as well as Emirates NBD's investment banking unit are arranging the investor meetings.

 

* Reuters