Dubai lender ENBD to announce plans for Tier 1 bond Monday

September 01, 2014 - 11:26:58 am

DUBAI: Emirates NBD, Dubai's largest lender, will announce plans later on Monday to issue a capital-boosting bond, banking sources told Reuters.

The bond issue, which will enhance the bank's Tier 1 or core capital, will be arranged by six banks including Citigroup, Morgan Stanley and Standard Chartered, two banking sources said, speaking on condition of anonymity as the information has yet to be made public.

Following a series of investor meetings, ENBD aims to complete a U.S. dollar-denominated bond offering of benchmark size, one of the sources said. Benchmark size is traditionally understood to mean upwards of $500 million.

ENBD declined to comment when contacted by Reuters.

The bank has issued one Tier 1 bond in the past: in May 2013, ENBD priced a $1 billion offering with a 5.75 percent coupon.

The bond was trading to yield 5.77 percent on the bid side at 0810 GMT, according to Thomson Reuters data.

ENBD's Tier 1 capital ratio stood at 15.6 percent at the end of June, according to the bank's financial statement. (Reuters)