Emirates NBD successfully raised a total of USD 1 bn split across a blue bond and a green bond tranche, with the orderbook more than twice oversubscribed, Zawya reports. The lender raised USD 300 mn from the Gulf’s maiden public blue bond, and USD 700 mn from a green sustainability-linked issuance.

The three-year blue tranche was priced at T+65 bps, significantly tighter than the initial guidance of T+95 bps, with a 4.195% coupon. The financing will be used to finance or refinance a subset of eligible green loans, along with investments contributing to a sustainable blue economy, Zawya said. Blue bonds are typically used to finance ocean and water-linked investments.

The five-year green issuance was priced at T+80 bps, tightening from an initial T+110 bps, with a 4.529% coupon. Green proceeds will flow into the bank’s standard eligible green categories under its September 2025 framework.

The senior unsecured Reg-S Eurobond issuances will be listed on Nasdaq Dubai and Euronext Dublin. They are being offered under ENBD’s USD 20 bn Medium Term Note program and are expected to be rated A1 by Moody’s and A+ by Fitch.

ADVISORS- Our friends at HSBC, along with Citi, ENBD Capital, Mizuho, Société Générale, and Standard Chartered led the transaction, with Citi and ENBD Capital acting as sustainability structures.

Why this matters

This is the Gulf’s first public blue bond, and the tightened spread suggest genuine market appetite for Middle East water risk. While private placements (like FAB’s blue bond) have taken place in the past, these are often bought by development banks and ESG funds, which could involve some mandate-buying strategies. On the other hand, a public issuance forces the instrument to stand on its own merits with global asset managers.

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