Dr. Bernd van Linder, Chief Executive of Commercial Bank of Dubai (CBD) rang the market-opening bell at Nasdaq Dubai to celebrate the listing of a 600 million US dollar AT1 conventional bond.
The six-year bond with a 6.000% interest rate was 2.1 times subscribed, and allocated to investors in the Middle East (61%), Europe (24%) and Asia (13%). It is the first bond issuance that CBD has listed on Nasdaq Dubai, the region’s international financial exchange.
CBD is one of the oldest and leading banks in the UAE, which offers a wide-range of products and services to both wholesale and individual clients, including but not limited to cash management, trade finance, treasury, project finance, credit cards and mortgages. CBD has adopted a number of well-awarded digital technologies and solutions in all the core customer segments.
Dr. Bernd van Linder, Chief Executive of Commercial Bank of Dubai (CBD), said: “We are pleased with the outcome for CBD’s inaugural AT1 issuance. The success of the transaction and in particular the diversified interest reflect the confidence investors have in CBD’s strategy and execution as well as the strength of the UAE economy. The issuance will enable the bank to further support local UAE businesses now and into the future. We are also delighted with listing the securities on Nasdaq Dubai, which is the region’s international exchange and the preferred choice of most regional and local issuers.”
Darren Clarke, Chief Financial Officer of Commercial Bank of Dubai (CBD), said: “The final pricing of the bond, being the lowest coupon paid by a Dubai based bank issuer on a Basel III compliant AT1 bond to date, has exceeded our expectations and underpins the confidence investors continue to have in UAE based issuers. The issuance further strengthens CBD’s capital profile and brings the bank back to the capital markets.”
Abdul Wahed Al Fahim, Chairman of Nasdaq Dubai, said: “CBD’s inaugural bond listing on Nasdaq Dubai underlines the growing role of the exchange in supporting capital-raising initiatives by leading Dubai and UAE entities, as they expand their activities for the benefit of the national economy and promoting prosperity. As the region’s international financial exchange, Nasdaq Dubai is committed to strengthening its leadership role as a centre for debt issuance by public and private sector issuers globally as well as in the MENA area.”
The value of new debt listings on Nasdaq Dubai so far this year has risen to 17.15 billion US dollars, up 9% from 15.85 billion US billion dollars in the same period of 2019.
Dubai is the largest venue in the Middle East for USD denominated debt listings, with a total value of 87.4 billion US dollars. By value 52% are from UAE issuers and 48% from overseas issuers.
Hamed Ali, Chief Executive of Nasdaq Dubai, said: “Nasdaq Dubai is delighted to collaborate with CBD to support the important banking services that it provides for companies and individuals and facilitate its links with investors around the world. The listing of the bond on Nasdaq Dubai as the region’s international exchange demonstrates the sophistication and depth of Dubai’s capital markets infrastructure and its capacity to meet the fast-moving requirements of market participants.”
CBD’s 600 million US dollar bond listed on Nasdaq Dubai on October 21, 2020.