Nasdaq Dubai has received a listing of a US$500 million bond issued by Arab Bank for Investment and Foreign Trade PJSC (Al Masraf), the Bank’s debut in the global debt capital markets, and strengthening Dubai’s position as a significant hub for global fixed-income issuances.
The five-year bond is issued within the US$5 billion Al Masraf Medium Term Note (EMTN) Programme and matures on 29th January 2031 with a coupon rate of 5.113 percent per annum, or a credit spread of 125 basis points over the US Treasuries.
The issue was well received by investors’ demand, and the order book reached a peak of more than $1.3 billion, indicating an oversubscription rate of 2.6 times.
The deal attracted a diversified pool of regional and international investors, including some of the largest fund managers in the world, banks, private banks, pension funds, and insurance companies.
The issuance mandate was announced on January 16, and the pricing was finished on January 22 after a series of investor meetings that were held in Hong Kong, Singapore, the United Kingdom, and the United Arab Emirates.
Meanwhile, the bond is rated as “A” by Fitch, and trades in the International Securities Market of the London Stock Exchange as well as on Nasdaq Dubai.
As part of the listing, Fuad Mohamed, CEO of Al Masraf, rang the market-opening bell at Nasdaq Dubai with the company, in addition to Hamed Ali, CEO of Nasdaq Dubai and Dubai Financial Market (DFM), and the senior representatives of both organisations.
Mohamed stated, “The strong investor demand reflects the investors’ belief in Al Masraf’s renewed strategic direction, reinforced management, and the positive strides on financial metrics over the last 12 months. Our capital market debut in the Bank’s Golden Jubilee year allows us to penetrate the international markets and reach out to a diverse investor base while at the same time reinvigorates the relations with our esteemed regional partners.”
Ali said, “Al Masraf’s debut bond listing reflects strong and sustained investor confidence in high-quality regional issuers and underscores the continued development of the UAE’s debt capital markets. The strong response to this issuance reflects the quality of the credit and the continued appeal of Dubai as a venue for international debt listings, reinforcing the role of Dubai’s markets in supporting regional issuers’ access to global capital.”
The aggregate value of outstanding debt securities traded in Nasdaq Dubai surpasses over $147.3 billion. This is indicative of the depth and variety of the issuers in the international debt markets of Dubai in the sovereign, financial institution, and corporate market segments.
