By Nikhil Lohade
DUBAI--Emirates NBD (EMIRATES.DFM), Dubai's biggest lender,
plans to meet fixed-income investors in the Middle East, Asia and
Europe starting this week and may issue a benchmark-sized, U.S.
dollar bond, after gauging demand, according to an arranging
bank.
Emirates NBD is likely to sell a perpetual Tier 1 bond, subject
to market conditions, the arranging bank told its clients in an
email viewed by The Wall Street Journal. Perpetual bonds have no
maturity date, while benchmark size is usually around $500
million.
The bond sale will help boost the core capital of Emirates NBD,
which has a big exposure to debt-laden Dubai--also its single
largest shareholder.
The bank has been one of the main beneficiaries of a strong
rebound in the emirate's economy since the global financial crisis.
However, it warned potential investors in its bond prospectus that
"concentrations" in its loan/financing receivable and deposit
portfolio leave it exposed to default risks from its larger
borrowers.
Morgan Stanley and Standard Chartered Bank have been mandated by
the Dubai lender as joint global coordinators, while Citigroup,
Commerzbank, Deutsche Bank, Emirates NBD Capital, Morgan Stanley
and Standard Chartered Bank will act as joint lead managers to
arrange the investor meetings, starting Sept. 4.
Write to Nikhil Lohade at nikhil.lohade@wsj.com