Emirates NBD, a leading banking group in the MENAT region, has successfully issued AED 1 billion in three-year fixed-rate Digitally Native Notes (DNNs). This transaction represents a major milestone for the region’s capital markets, marking the first-ever AED-denominated digital bond and the largest public digital bond issuance in MENA.
Pioneering a Regional First
The AED 1 billion issuance, conducted under Emirates NBD’s Euro Medium Term Note (EMTN) Programme, sets a new benchmark for financial innovation in the Middle East. By denominating the digital bond in the local UAE Dirham, the bank is not only showcasing its advanced digital capabilities but also deepening the liquidity and sophistication of local currency capital markets.
The issuance attracted a diverse base of investors, signaling strong market confidence in both Emirates NBD’s credit quality and its forward-thinking approach to digital finance. The notes are officially listed on Nasdaq Dubai, ensuring secondary market access and adherence to international regulatory standards.
Harnessing DLT for Enhanced Efficiency
A core component of this landmark deal is the use of distributed ledger technology (DLT) to digitise the entire bond lifecycle. The transaction was executed on Euroclear’s Digital Financial Market Infrastructure (D-FMI) platform, a move designed to streamline processes and introduce new efficiencies.
Ahmed Al Qassim, Group Head of Wholesale Banking at Emirates NBD, commented on the strategic benefits of the technology.
“We are confident that the transaction will enhance operational efficiency, speed up settlement cycles and strengthen transparency and security for investors.”
Bernard Ferran, Chief Commercial Officer at Euroclear Group, highlighted the growing maturity of digital assets in the financial sector.
“This transaction demonstrates how digital issuance is delivering real value for clients and moving beyond concept into repeatable market practice. Supporting Emirates NBD’s AED 1 billion bond on our D-FMI builds on the accelerated pace of our digital issuance model and supports our broader growth ambitions in the Middle East.”
Key Financial Institutions Collaborate
The successful execution of the bond was supported by a syndicate of leading financial institutions. Emirates NBD Capital, First Abu Dhabi Bank, Mashreq, and Standard Chartered acted as Joint Lead Managers. Emirates NBD Capital and Standard Chartered also served as Joint Digitally Native Note Structurers, while Citi was appointed as the Issuing and Paying Agent.
About Emirates NBD
Emirates NBD is a leading banking group in the Middle East, North Africa and Turkey (MENAT) region with a presence in 13 countries, serving over 20 million customers. The Group has a leading retail banking franchise in the UAE and is a key participant in the global digital banking industry, with 97% of all financial transactions and requests conducted outside of its branches. As of 31 December 2023, its total assets were AED 863 billion.
Source: Fintech News Middle East
