ENBD raises USD 1.5 bn in private issuance

Another private placement offering: Emirates NBD has raised USD 1.5 bn through a five-year senior unsecured bond in a private placement offering priced at 5.125%, Zawya reports. The lender had previously reopened the region AT1 market back in April, with orders of more than three times the issuance size signalling confidence in UAE capital markets which had seen a quieter-than-usual 1Q due to the regional war.

IN CONTEXT- The transaction isn’t the only recent pivot to private debt markets — Abu Dhabi turned to private debt placements earlier in April, raising USD 2.5 bn after the war with Iran triggered disruptions in public bond issuances and pushed issuers toward private funding.

BACKGROUND- It comes amid a recent rush back to debt markets in the UAE we’ve been tracking recently. First Abu Dhabi Bank has already raised USD 700 mn through a five-year sukuk in May, seen over EUR 1.1 bn in orders for its EUR 750 mn green bond earlier this month, and has been marketing fresh Tier 2 securities. Dubai Islamic Bank has already tapped debt markets twice this month.

It’s not just the lenders: ADX-listed healthcare provider Burjeel is moving ahead with its debt sukuk after hitting pause on a benchmark-sized five-year Reg S senior unsecured issuance in April after the war pushed spreads wider.

More to come? Analysts previously told us that Gulf firms and sovereigns were making a cautious return to debt markets and penciled in a continued uptick in activity for June before the summer lull. Spreads for investment-grade names were already back at pre-war levels, they told us, despite there still being a premium for some banks and real estate players.

ADVISORS- ENBD and JPMorgan were joint bookrunners for ENBD’s latest issuance.