Emirates Bank International’s $500m five-year floating rate note issue
Emirates Financial Services, HSBC and Morgan Stanley were joint lead managers
As part of its $1bn Euro Medium Term Note programme, Emirates Bank International (EBI) successfully issued a $500m five-year note – the largest ever bond issued by a Gulf Co-operation Council-based financial institution. The deal was priced at Libor plus 55bp.
After initially seeking to raise $250m, the final order book was nearly three times oversubscribed, allowing the deal to be upsized to $500m. Unfulfilled demand led to good liquidity in the early stages of the secondary markets.
Significantly, 66% of the bonds were placed outside the Middle East, the highest such proportion to be achieved by any GCC-based financial institution bond issue. Of the final order book, about 70% represented orders placed by investors that were new to EBI; 24% of the deal was placed with non-bank investors.
