Emirates NBD has announced the launch of fractional bonds on its awards winning mobile banking app ENBD X. The announcement was made by the bank at the Dubai Fintech Summit, held at Madinat Jumeirah on 6-7 May 2024.
In 2023, Emirates NBD became one of the first financial institutions in the region to provide fractional bonds to individual investors. It will now be extending this offering on its digital wealth platform on ENBD X, which has 96% bank active users.
The international bond market typically demands a minimum investment of USD 200,000. With fractional bonds offered on ENBD X, customers will be able to invest smaller amounts of USD 25,000 and still enjoy the benefits of fixed-income products.
Fractional bonds offer customers several advantages, including diversification opportunities, enabling customers to spread their risk across different bond issuers, sectors, and maturity periods and thereby enhance the stability and resilience of their investment portfolios. They allow customers to create customised bond portfolios that match their investment goals, allowing customers to select bonds based on their risk tolerance, desired yields, credit ratings, and other criteria. Moreover, fractional bond investors can easily liquidate their bond investments and access funds when needed.
The fractional bonds offering on ENBD X app will allow customers to search available bonds by yield, coupon rate, coupon frequency, maturity type, bond rank and bond category, and other advanced criteria. Furthermore, prices will be continuously updated in real-time and, on completion of the transaction, customers will be informed instantly through a push notification on ENBD X. Afterwards, customers will be able to monitor their bond portfolio in real-time, including the accrued interest amount and the next coupon payment.
Marwan Hadi, Group Head of Retail Banking and Wealth Management at Emirates NBD said: “As a front-runner in digital banking innovation in the MENAT region, we are committed to enhancing our customers’ banking experience by continuously introducing groundbreaking next-generation digital products and services. The upcoming addition of fractional bonds on ENBD X’s digital wealth platform exemplifies this commitment by combining our business and technology expertise into a distinctive and scalable solution.”
Ammar Al Haj, Group Treasurer and Head of Global Markets at, Emirates NBD, said: “Catering to the evolving needs of our customers, Emirates NBD’s introduction of fractional bonds on the ENBD X’s digital wealth platform marks a pivotal moment in our journey towards increasing access to financial markets. Technology and innovation are the cornerstone at Emirates NBD, and with the new offering we empower investors to participate in the international bond market with as little as USD 25,000, unlocking new avenues for wealth creation and portfolio diversification.”
