Commercial Bank of Dubai secures $500mln 5-year bond in global market

Commercial Bank of Dubai (CBD) successfully completed the issuance of a $500 million five-year bond, marking another significant step in its expansion within the international capital markets. The issuance, part of the bank’s ongoing Euro Medium-Term Note (EMTN) program, was aimed at strengthening its funding base and diversifying the investor pool.

The bond issuance received a robust response from global investors, with demand coming from Europe, Asia, and the Middle East. This oversubscription allowed CBD to finalize a competitive interest rate of 3.375%, positioning the bond favorably compared to similar recent issuances by UAE-based banks. The five-year conventional bond will be listed on the Irish Stock Exchange.

Leading the transaction were several major financial institutions. HSBC, Citigroup, and the National Bank of Abu Dhabi acted as joint lead managers. The bond is part of the bank’s $2 billion EMTN program, which was rated A- by Fitch and Baa1 by Moody's. The success of this issuance demonstrates the strength of CBD's financial standing and the confidence global investors have in the institution's future outlook.

As part of its roadshow, CBD engaged with investors across several regions, including Europe and Asia. The presentations conducted at these meetings were met with enthusiasm, ultimately leading to the high demand for the bond, which exceeded expectations.