Emirates NBD raises $272m with digital bond

• Mena’s ‘first AED-denominated bond’
• Digitally native notes issued on D-FMI
• Attracts diverse investor base

Emirates NBD, Dubai’s largest bank by assets, has issued what it claims is the Middle East and North Africa’s first AED-denominated digital bond.

The AED1 billion ($272.3 million), in three-year fixed-rate digitally native notes, was issued via a public offering under Emirates NBD’s Euro medium-term note programme, the lender said in a statement.

Digitally native notes are issued directly on a blockchain or a digital securities platform, enabling faster settlement cycles, lower costs, greater transparency and reduced counterparty risk.

The issuance was done through Euroclear’s digital financial market infrastructure (D-FMI) platform. 

Euroclear’s D-FMI enables the creation, issuance and settlement of fully digital international securities.

The digital bond attracted a diverse investor base, Emirates NBD said, without giving any details. The purpose of the bond issuance was not disclosed.

Emirates NBD Capital, First Abu Dhabi Bank, Mashreq and Standard Chartered acted as joint lead managers, while Emirates NBD Capital and Standard Chartered acted as the joint digitally native note structurers. 

• Emirates NBD raises $1bn via sustainable bonds
• Emirates NBD ‘interested’ in IDBI Bank stake
• UAE banks lean on fees as lending margins narrow

The notes will be listed and traded on Nasdaq Dubai, marking the first digitally native bond to be listed on the exchange.

This month Emirates NBD raised $1 billion through the issuance of dual-tranche blue and green bonds.

Emirates NBD’s shares, which trade on the Dubai Financial Market, closed 1.1 percent lower at AED30.15 on Monday. It is up 7 percent year to date.

Investment Corporation of Dubai owns a 41 percent stake in Emirates NBD.