Emirates NBD has successfully completed the inaugural issuance of offshore Renminbi ‘CNY’ 750 million Fixed Rate Notes, maturing in 2015 off their $7,500m Medium Term Note Programme. The notes are rated A3 by Moody’s and A+ by Fitch and pay a fixed rate coupon of 4.875%. Emirates NBD Capital, HSBC Bank Plc and Standard Chartered Bank were joint lead managers and bookrunners on the transaction.
This is the first ever CNY issuance by a Middle Eastern issuer.
Emirates NBD announced investor meetings on the 22nd of February with a 2 day roadshow covering Hong Kong and Singapore. Emirates NBD was represented on the roadshows by senior management who presented the group’s credit story during the meetings with high quality accounts across the region, which demonstrated strong interest in the credit.
Post the completion of the roadshow, Emirates NBD has been monitoring the market for a suitable execution window and announced a transaction on Monday, March 5th. Books opened mid morning Asia time on Monday with initial pricing thoughts of 5.000% area. The book built steadily exceeding CNY 1.5bn within 3 hours. Final price guidance of 4.875% – 5.000% and the maximum deal size of CNY 750mn were released London early am, allowing a window for European participation. Accounts reacted positively with a final order book of CNY 4.3bn across 98 orders (5.7x oversubscription), allowing Emirates NBD to close the books and price on the same afternoon at the tight end of the guidance.
The issue saw diverse distribution by investor type with private banks allocated 43 % of the issue, fund managers & insurance 38%, banks 8%, hedge funds 5% and the balance allocated to other types of investors. Allocation per geography was: 57% HK & China, 30% Singapore, 5% Taiwan, 7% Europe and 1% Middle East.
Emirates NBD successfully achieved its issue objectives of opening a new market and diversifying further its funding profile.
This is the second issue by the Emirates NBD Group in 2012, following the Emirates Islamic Bank’s successful USD benchmark Sukuk in January.
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