UAE lenders are continuing their active run in global debt markets, with Emirates NBD and Sharjah Islamic Bank (SIB) launching fresh issuances on Euronext Dublin and Nasdaq Dubai.

#1- Emirates NBD is set to issue USD 1 bn in additional tier 1 (AT1) capital securities on Euronext Dublin and Nasdaq Dubai next week, Zawya reports. The Reg S, Category 2 perpetual six-year issuance, which Emirates NBD gave initial price thoughts of 6.25%, has a first call date in August 2030, resetting in February 2031.

SOUND SMART- AT1 bonds allow banks to raise tier-one capital without diluting shareholder ownership and have no fixed maturity date.

This would be Emirates NBD’s second issuance this year, following a USD 700 mn issuance last month to be listed on the Taipei Exchange. The lender set the final pricing guidance at the SOFR plus 110 bps, with denominations of USD 200k and increments of USD 1k beyond that.

ADVISORS- Abu Dhabi Commercial Bank, Bank of America Securities, Citi, Emirates NBD Capital, First Abu Dhabi Bank (FAB), and Standard Chartered Bank are acting as joint lead managers and bookrunners.

#2- SIB launches USD 500 mn sukuk: Sharjah Islamic Bank (SIB) plans to list a USD 500 mn Reg S five-year sukuk on Euronext Dublin and Nasdaq Dubai, with initial pricing set at T+1.25%, Zawya reports. The issuance follows a wakala structure under SIB Sukuk Company III and is part of the bank’s USD 3 bn trust certificate program.

This year has seen several sukuk issuances from local banks: In January, First Abu Dhabi Bank priced a USD 600 mn five-year sukuk amid strong demand with a profit rate of 5.2%. The sukuk — which was 2x oversubscribed, with initial pricing of T+100 bps — will list on the London Stock Exchange. Damac Real Estate Development also tapped advisors earlier this week to organize fixed income investor calls that may be followed by a 3.5-year benchmark Reg S, USD-denominated, senior unsecured sukuk offering. UAE-based issuers’ total sukuk issuance volume hit USD 14.4 bn in 2024, with S&P Global Ratings projecting that this volume will remain steady at USD 14-15 bn in 2025, “underpinned by banks and corporate issuances.”

ADVISORS-Our friends at Mashreq, along with Emirates NBD Capital, HSBC, Standard Chartered, Abu Dhabi Islamic Bank, Dubai Islamic Bank, ICD, and Warba Bank are joint lead managers and bookrunners.

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