CBD marks $600mn bond listing on Nasdaq Dubai; Rings market-opening bell

By Rahul Vaimal, Associate Editor
  • Follow author on
CBD-Nasdaq Dubai
Representational Image

UAE-based Commercial Bank of Dubai (CBD) marked the listing of a $600 million AT1 conventional bond by ringing the market-opening bell at Nasdaq Dubai.

The six-year bond with a 6 percent interest rate was 2.1 times subscribed and was issued to 61 percent, 24 percent and 31 percent of investors in the Middle East, Europe and Asia respectively.

CBD’s $600 million bonds were listed on Nasdaq Dubai, the region’s international financial exchange on October 21 and it is the first bond issuance made by the bank in the stock exchange.

The Chief Financial Officer of CBD, Mr. Darren Clarke stated that with this issuance the bank’s capital profile will be strengthened and it will take the bank back into the capital markets. 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, was above the expectations.

Dr. Bernd van Linder
Dr. Bernd van Linder
Commercial Bank of Dubai

“The success of the transaction and in particular the diversified interest reflects 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.”

Commenting on the success of the issuance 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.”

The bond listing in the region’s international exchange Nasdaq Dubai shows the sophistication and depth of the Dubai capital market and its capability to meet the timely changing needs of the market participants, stated Hamed Ali, Chief Executive of Nasdaq Dubai.

The value of new debt listings on Nasdaq Dubai so far this year has risen to $17.15 billion, up 9 percent from $15.85 billion years on year.

Dubai is the largest destination in the Middle East for US dollar-denominated debt listings, with a value of $87.4 billion. In terms of value, 52 percent are from UAE issuers and 48 percent from overseas issuers.