Emirates NBD taps Asian banks for up to USD 1 bn

Emirates NBD is the latest Gulf name turning to Asian lenders for cash. The bank is seeking a loan of at least USD 500 mn from Asian banks, with an option to upsize it to USD 1 bn, Bloomberg reports, citing people familiar with the matter. That puts Dubai’s largest bank in a queue of regional borrowers that has been growing for weeks.

The details: The loan has a USD 500 mn base and an option to add another USD 500 mn. The five-year tranche is priced at 90 bps over the Secured Overnight Financing Rate (SOFR), and the seven-year tranche at 110 bps. Mizuho Bank is underwriting the facility, and proceeds will go to working capital and general corporate purposes, the people told Bloomberg. ENBD and Mizuho didn’t respond to Bloomberg’s requests for comment.

Why it matters: The Asian lending window is open again. Asian banks were the Gulf’s biggest financiers last year. They lent the region more than USD 17 bn, a record and more than triple the 2024 figure, according to Bloomberg data. That lending dried up after the Iran war broke out in late February. The recent run of issuances shows Asian lenders are again willing to back some Gulf borrowers despite the risks.

IN CONTEXT- Gulf borrowers have been heading east for weeks: Qatar National Bank signed a USD 2.5 bn loan led by Asian lenders earlier this month. QatarEnergy secured USD 3 bn from four Chinese banks. Dubai Aerospace Enterprise (DAE) has been seeking a USD 2.1 bn loan, mostly from Asian banks. And our friends at Mashreq raised CNH 1 bn in their first Dim Sum bond. The draw is larger commitments, competitive pricing, and longer tenors, as we reported earlier this month.

The Asian loan is the latest stop in ENBD’s push to widen its funding base. Late last month, the bank priced its first public CHF green bond, a five-year CHF 150 mn (c. USD 184 mn) deal, at 115 bps over SARON mid-swaps.