Prime Highlights:
- Arab Bank for Investment and Foreign Trade (Al Masraf) listed its first $500 million international bond on Nasdaq Dubai, marking entry into global debt markets.
- Strong investor demand led to a 2.6x oversubscription, reflecting confidence in top-tier regional companies.
Key Facts:
- The five-year bond offers a 5.113% annual coupon and a spread of 125 basis points over US Treasuries, rated ‘A’ by Fitch.
- The bond is also listed on the London Stock Exchange’s International Securities Market, enhancing its visibility to global investors.
Background
Nasdaq Dubai has welcomed the listing of a $500 million bond issued by Arab Bank for Investment and Foreign Trade (Al Masraf), marking the bank’s first entry into the international debt capital markets. The listing also highlights Dubai’s growing position as a key global centre for fixed-income issuances.
The bond was launched as part of Al Masraf’s $5 billion Medium Term Note (EMTN) program. It has a five-year maturity, due on January 29, 2031, and offers an annual coupon of 5.113 percent. The pricing represents a spread of 125 basis points over US Treasuries.
Investor demand for the bond was strong. The order book reached more than $1.3 billion at its peak, making the issue 2.6 times oversubscribed. The transaction attracted a wide mix of regional and international investors, including global asset managers, banks, private banks, pension funds and insurance companies.
The issuance process began on January 16, when the mandate was announced. Pricing was completed on January 22 after a series of investor meetings held in Hong Kong, Singapore, the UK and the UAE.
Fitch Ratings assigned the bond an ‘A’ rating. In addition to Nasdaq Dubai, the bond is also listed on the London Stock Exchange’s International Securities Market, increasing its visibility among global investors.
To mark the listing, Al Masraf CEO Fuad Mohamed rang the market-opening bell at Nasdaq Dubai alongside Hamed Ali, CEO of Nasdaq Dubai and Dubai Financial Market, and senior representatives from both institutions.
Nasdaq Dubai stated that the successful listing demonstrates robust investor confidence in top-tier regional companies. The exchange currently lists more than $147.3 billion in outstanding debt securities, underlining its role in connecting regional borrowers with global capital markets.
