Banking sources says Dubai's largest lender eyes second such issue in space of 18 months
Emirates NBD (ENBD), Dubai's largest lender, will announce plans later on Monday to issue a capital-boosting bond, banking sources told Reuters, its second such issue in the space of 18 months.
The bond issue, which will enhance the bank's Tier 1 - or core - capital, will be arranged by six banks: Citigroup, Commerzbank, Deutsche Bank, Morgan Stanley , Standard Chartered and Emirates NBD itself, the 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.