Dubai's Emirates NBD to hold off on Swiss franc bond

Dubai's largest bank by market value awaiting favourable market conditions
Dubai's Emirates NBD to hold off on Swiss franc bond
Emirates NBD has over $2.18bn in debt maturing this year, including a $1.5bn loan due in October.
By Reuters
Mon 20 Feb 2012 10:43 AM

Dubai's largest bank by market value, has opted to delay a potential Swiss franc-denominated bond sale until more favourable market conditions, two sources familiar with the matter said.

The lender had appointed Credit Suisse and BNP Paribas to assess a potential Swiss bond sale, sources told Reuters last week.

"The bank has decided against it," one ENBD source said, speaking on condition of anonymity. "The timing is not right," the source said, adding the lender could tap the market at a later stage.

A spokesman for the bank was not immediately available for comment.

Emirates NBD has just over AED8bn ($2.18bn) in debt maturing this year, including a $1.5bn loan due in October.

However, there is less urgency surrounding its short-term liquidity needs after the bank received AED2.8bn ($762m) as an eight-year loan from the United Arab Emirates'(UAE) finance ministry at below market rates.

The loan was intended to facilitate Emirates NBD's acquisition of struggling Islamic lender Dubai Bank last year.

ENBD reported a sharp fall in profits last week, its second consecutive quarterly profit drop, on higher provisioning for bad loans.

Commercial Bank of Qatar, Abu Dhabi Commercial Bank and First Gulf Bank are other Gulf lenders to have tapped Swiss liquidity since 2010.

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