DUBAI: Emirates NBD, Dubai's largest lender, may price a benchmark-size subordinated bond as early as Monday, a document from lead managers said, with the instrument aimed at boosting the bank's supplementary capital.
Initial price guidance for the deal, which has a ten-year lifespan but which can be redeemed by the borrower at the end of the fifth year, has been set in the low 5 percent area.
Books are open for the dollar-denominated transaction, the document added. Benchmark-size deals are traditionally worth at least $500 million.
Emirates NBD has mandated itself along with Citigroup, HSBC, JP Morgan Chase, Societe Generale and Standard Chartered to arrange the bond.
A successful sale would help Emirates NBD repay part of the 12.6 billion dirhams ($3.4 billion) which it received from the government in 2008. The bank said in January that it was looking to begin repayment of the funds. (Reuters)
