- Emirates NBD issued a $272M digital bond, a first in MENA.
- Listed on Nasdaq Dubai, highlighting UAE’s digital finance leadership.
- Demonstrates increased maturity of digital debt markets.
Emirates NBD issued a $272 million digital bond using distributed ledger technology via Euroclear’s D-FMI platform, marking the first AED-denominated public digital bond in the Middle East.
The oversubscribed bond signals increased investor confidence and UAE’s leadership in digital finance, potentially reshaping regional debt markets with enhanced transaction efficiency and transparency.
Emirates NBD has launched AED 1 billion ($272 million) in 3-year Digitally Native Notes (DNNs) with a 4.25% coupon, marking the Middle East’s first AED-denominated digital bond. Utilizing distributed ledger technology (DLT), the bond was oversubscribed 1.3 times.
The issuance, listed on Nasdaq Dubai for trading transparency, was under the Euro Medium Term Note (EMTN) Programme. Euroclear’s D-FMI platform provided the DLT infrastructure, while Emirates NBD Capital and Standard Chartered acted as joint note structurers.
This issuance emphasizes UAE’s pro-business regulations and aims to set benchmarks in digital assets across the Middle East. Hamed Ali, CEO of Nasdaq Dubai, underlined the bond’s role in accelerating the digital debt market’s maturity.
The bond saw participation from diverse investor bases, highlighting strong market demand. Salman Ansari from Standard Chartered acknowledged the collaboration of market infrastructure with DLT, boosting regional capital market modernization efforts.
Emirates NBD’s effort did not impact cryptocurrencies, focusing instead on fiat currency through a private DLT platform. The bond attracted no changes in Moody’s or Fitch ratings, suggesting stable confidence in the new issuance model.
Historically, Emirates NBD has engaged in various digital initiatives, including blue and green bonds. This issuance reinforces the technical and financial feasibility of using DLT to modernize and enhance efficiency in debt markets and potentially streamline future financial transactions.
Ahmed Al Qassim, Group Head of Wholesale Banking, Emirates NBD, said: “This issuance is a landmark for Emirates NBD and the region’s debt capital markets, highlighting our leadership in digital finance. Supported by pro-business regulations and a forward-thinking approach to financial services, the UAE continues to set new benchmarks for digital assets and distributed ledger technology throughout the Middle East.”
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