Emirates NBD's CNY 1 Billion Bond Boosts Dubai's Market

In a significant development for the Dubai Financial Market (DFM) and the broader financial landscape of the United Arab Emirates, Emirates NBD has successfully listed a CNY 1 billion (USD 140 million) bond on Nasdaq Dubai. This move marks the bank's return to the Dim Sum market, a crucial step in diversifying its funding base and enhancing its presence in international capital markets.

The bond, issued under Emirates NBD's USD 20 billion Euro Medium Term Note (EMTN) Programme, carries a 2.40% interest rate and is due in 2028. This issuance not only underscores the bank's strategic focus on broadening its funding sources but also highlights the growing investor appetite for high-quality issuances from UAE financial institutions.

Dubai Financial Market, as the operator of the Dubai Stock Exchange and a key player in the region's financial ecosystem, stands to gain significantly from such listings. The presence of robust regulatory frameworks and a high international profile makes Nasdaq Dubai an ideal platform for such financial instruments. This listing further cements Dubai's position as a leading global financial hub, particularly in the realm of debt capital markets.

Hesham Abdulla Al Qassim, Vice Chairman and Managing Director at Emirates NBD, emphasized the strategic importance of this issuance, stating, We are pleased to issue yet another offering catering to an active demand for renminbi-denominated bonds outside mainland China. This new issuance underscores our strategic focus on wealth creation for our clients, supported by significant capital inflows to the country and an attractive product portfolio to meet customer appetite.

Hamed Ali, CEO of Nasdaq Dubai and Dubai Financial Market (DFM), echoed these sentiments, noting that Dubai's international exchange continues to provide a trusted platform for UAE issuers to reach global investors. The listing of Emirates NBD's Dim Sum bond highlights the growing appeal of Dubai's market and the ability of leading institutions to diversify their funding across currencies and geographies.

As of now, the total outstanding value of debt securities listed on Nasdaq Dubai has reached USD 140 billion, reinforcing the exchange's role as a leading hub for fixed income in the region. For investors, this development presents a compelling opportunity to engage with a growing market that is increasingly interconnected with global financial systems.

Given the strategic moves by Emirates NBD and the favorable market conditions facilitated by the Dubai Financial Market, the recommendation for investors is to buy. The bank's proactive approach in diversifying its funding sources and the robust regulatory environment in Dubai make it a promising investment avenue.