Latest news with #EmiratesNBDCapital
Zawya
11-06-2025
- Business
- Zawya
Emirates NBD tightens price on AUS $600mln 10-year benchmark Kangaroo bond
Emirates NBD, the UAE's second largest lender by total assets, has tightened the price on its $600 million Australian dollars ($391 million) 10-year fixed benchmark senior unsecured Kangaroo bond that launched today. The spread is set at asset swaps plus 185bps, with an exchange of futures for physical (EFP) at +164.3 (June) and +160.3 (September). The coupon rate is set at 5.913%. The final orderbook is in excess of $1.19 billion Australian dollars ($775 million), inclusive of an AUS $50 million JLM demand. The expected issue rating is A1 / A+ (Moody's / Fitch), in line with the bank's rating. Emirates NBD Capital, Mizuho, and Nomura have been appointed joint lead managers and joint bookrunners on the bond issuance. The issuance comes under ENBD's AUS $4 billion Kangaroo Debt Issuance Programme. (Writing by Bindu Rai, editing by Seban Scaria)
Arabian Post
10-06-2025
- Business
- Arabian Post
Emirates NBD Targets A$10-Year Kangaroo Bond Amid Strong Investor Demand
Emirates NBD, the UAE's second-largest bank by total assets, has initiated a mandate for a possible 10-year fixed-rate 'Kangaroo' bond denominated in Australian dollars under its A$4 billion Kangaroo Debt Issuance Programme. The bank is seeking indications of interest at initial price thoughts of about 195 basis points above the relevant asset swap rate, aiming to meet growing appetite among institutional investors for high-quality yield. The bond is expected to carry a credit rating of A1/A+ from Moody's and Fitch respectively, matching those of the issuer. The bond would be senior unsecured debt with an indicative coupon of around 6.00%, pricing in line with a potential yield of approximately 6.05%. The issuance is scheduled for pricing on 11 June, with Emirates NBD Capital, Mizuho and Nomura appointed as joint lead managers and bookrunners, signalling robust global distribution capabilities. Australia's Kangaroo market, known for inviting foreign issuers to raise AUD-denominated funding, continues to attract significant interest from international banks seeking to diversify investor bases. Emirates NBD previously tapped this market in February 2023, successfully raising A$450 million with a 10-year bond at a coupon of 6.1%, which translated to a yield of 6.122%, with lead syndicate roles shared by ANZ, Emirates NBD Capital, JPMorgan and Nomura. ADVERTISEMENT Emirates NBD's decision aligns with broader shifts in global capital markets, where yield-seeking investors have increasingly turned towards emerging markets and non-domestic issuers. With global central bank rates remaining elevated by historical standards, the return profiles for emitters such as Emirates NBD remain competitive and compelling relative to their credit quality. In issuing under its A$4 billion programme, Emirates NBD gains operational efficiency and flexibility, enabling quicker access to Kangaroo debt markets across multiple tranches and tenors. This is increasingly important as the bank seeks to balance its funding mix and hedge foreign exchange exposures, while also responding to investor demand for Australian dollar-denominated debt. The joint appointment of Emirates NBD Capital, Mizuho and Nomura suggests a balanced distribution strategy spanning Middle Eastern, Asian and Australian investor bases. Mizuho and Nomura bring strong regional connections, while Emirates NBD Capital reassures existing institutional clients and opens up Gulf-based connections. These partners typically assist in roadshows and investor education, critical to achieving desired guidance levels within a tight spread band. The announced IPT of ASW +195 is slightly tighter than previous placements, including the +200 bps initial range for the issuer's 2023 Kangaroo issuance. That earlier deal priced at about +190 bps over semi-annual swaps, reportedly oversubscribed and closed near the high of guidance at +190 bps. This signals both confidence from investors and the bank's ability to leverage its credit rating improvements and market familiarity among bond buyers. Emirates NBD's credit ratings—A1 from Moody's and A+ from Fitch—are stable and investment grade, contributing to investor trust. The structure of the bond, senior unsecured, ensures it ranks equally with the bank's other senior debt instruments, offering a transparent risk profile. This clarity is increasingly valuable in a fragmented global debt landscape. ADVERTISEMENT From a broader perspective, the Kangaroo bond market remains an attractive source of funding for non-Australian issuers. Despite global economic uncertainty and central banks in developed markets maintaining restrictive stances, Australia continues to offer a relatively deep and liquid market for AUD debt issuance. Borrowers such as Korean and UAE banks, supranationals, and corporate issuers have consistently returned to Kangaroo markets, with transactions spanning green and social bond categories. The presence of repeat issuers, like Emirates NBD, demonstrates the market's capacity to absorb benchmark-sized offerings and incentivises future jumbo deals. The bond's expected settlement date coincides strategically with market calm, ahead of potential volatility later this month. It allows the issuer to lock in yields and spreads before any shifts by the Reserve Bank of Australia or international central banks may influence market tone. Market participants note that Kangaroo bond spreads have tightened modestly year‑to‑date, reflecting a combination of steady demand for AUD assets and limited supply, as domestic issuers remain cautious about issuance volumes. Investors are closely analysing the macro backdrop as well. With Australia's inflation rate cooling but still above target, and rate cuts yet to be firmly priced, the yield curve remains attractive. At the same time, credit spreads for Gulf-based issuers have narrowed following positive ratings actions earlier in 2025—including recent upgrades to Emirates NBD's long-term foreign-currency rating by Moody's and reaffirmation from Fitch. Emerging-market bond funds and Australian institutional investors have strengthened allocations to foreign bank bonds over the past two years, partly driven by yield differentials. The A$ mandate from Emirates NBD therefore arrives at a juncture when sources of long-dated, investment-grade AUD debt remain limited: Australian domestic issuers primarily focus on shorter tenors, while many supranationals have paused issuance. Within that context, the expected coupon of 6.00% positions Emirates NBD within line with peer Gulf and Asian issuers, though still appealing versus domestic equivalents. The pricing strategy—fixed coupon yielding slightly above the indicative spread—indicates modest downward flexibility built into the range, suggesting confidence in investor appetite. The syndication strategy also reflects a desire to balance pricing certainty with market reach. As joint bookrunners, Emirates NBD Capital, Mizuho and Nomura will engage with global buy‑side accounts, including Australian super funds, asset managers and credit hedge funds looking to overlay returns in a higher‑yield environment. Observers view this Kangaroo issuance as both a statement of strategic intent by Emirates NBD and a confirmation of investor trust in the bank's creditworthiness. By revisiting the 10-year tenor after a two-year hiatus, the bank signals comfort with reengaging long-term markets amid evolving economic trends. Prospective investors will closely monitor investor feedback during this week's marketing phase. A well-received launch—evidenced by an oversubscription or tightening of final pricing to below the IPTs—may encourage further Kangaroo tranches later this year, potentially expanding tenor or volume.
Zawya
10-06-2025
- Business
- Zawya
UAE's Emirates NBD issues mandate for kangaroo bond
Emirates NBD, the UAE's second largest bank by total assets, has issued a mandate for a potential 10-year Australian dollar benchmark sized fixed kangaroo bond. The lender is taking Indications of Interest (IoIs) at IPTs of asset swaps +195 bps area. The expected issue rating is A1 / A+ (Moody's / Fitch), in line with the bank's rating. The senior unsecured debt issuance has an indicative coupon on 6.00%, with a yield of 6.05%. Emirates NBD Capital, Mizuho, and Nomura have been appointed joint lead managers and joint bookrunners. The issuance comes under ENBD's AUS $4 billion Kangaroo Debt Issuance Programme and will be priced on June 11. (Writing by Bindu Rai, editing by Seban Scaria)
Irish Times
02-05-2025
- Business
- Irish Times
Avolon raises $1bn bank facility
Aviation finance company Avolon has raised $1 billion in a new unsecured dual tranche bank facility with six banks in the Middle East as it diversifies its capital sources. The move follows the announcement of a new $1.1 billion senior unsecured facility late last month, bringing the total of new unsecured facilities raised in the second quarter to $2.1 billion. The new facility, which has a conventional and an Islamic tranche, includes five new banks and was coordinated by Emirates NBD Capital, alongside Abu Dhabi Commercial Bank and Warba Bank as initial mandated lead arrangers and bookrunners. Avolon previously raised a $750 million credit facility in June last year that had significant participation from Middle East banks. READ MORE 'This facility further expands our banking relationships in the Middle East consistent with our strategy of diversifying our sources of capital,' said Ross O'Connor, chief financial officer of Avolon. 'It demonstrates the strong appetite in the region for high quality aviation lending opportunities, with Avolon's positive financial trajectory and successful growth strategy ensuring the transaction was well supported.'
Zawya
29-04-2025
- Business
- Zawya
Bahrain mandates banks for USD 8-year sukuk, 12-year bond
Bahrain, acting through the Ministry of Finance and National Economy, has mandated banks to arrange a series of virtual fixed income investor calls commencing on Tuesday, 29 April 2025. A Regulation S /144A benchmark size dual tranche USD-denominated fixed rate transaction consisting of an 8-year sukuk under the Bahrain's Trust Certificate Issuance Programme and a 12-year senior, unsecured bond under Bahrain's Global Medium Term Note Programme will follow, subject to market conditions. The kingdom is rated B+ (negative outlook) by both Fitch Ratings and S&P. Last week S&P downgraded Bahrain's outlook to "negative" from "stable" citing ongoing market volatility and weaker financing conditions that could increase the government's interest burden. Citi, First Abu Dhabi Bank, HSBC, JP Morgan and National Bank of Bahrain have been picked as joint global coordinators. Bank ABC, Dubai Islamic Bank, Emirates NBD Capital, KFH Capital and KIB Invest are mandated as joint bookrunners on the sukuk tranche. Together with the global coordinators, Bank ABC and Emirates NBD Capital are mandated as joint bookrunners on the bond tranche. The proceeds of the issuances will be utilised for general budgetary purposes. The sukuk and bonds, which will be listed on the London Stock Exchange, are expected to be rated B+ by Fitch and S&P. (Writing by Brinda Darasha; editing by Seban Scaria)
