Emirates Bank's FRN offering receives USD 700 million of firm orders

In June 2002, Emirates Bank had established an EMTN programme for US$ 1 billion and under it launched its debut bond issue by way of a five-year Floating Rate Note (FRN).

Last week, Emirates Bank approached the international markets with a second FRN issue. Investor meetings were held in London, Singapore, Tokyo and HongKong, and these resulted in considerable investor interest. The Bank decided to accept twice its original targeted amount so as to accommodate as many new investors as possible.

Mr. Suresh Kumar, Emirates Bank's General Manager (Asset Management & Markets), stated that while the response was positive and overwhelming, it was equally gratifying to note that several 'who's who' of the investment world in Europe and Asia were keen to invest in this issue and listened very intently and with great interest to the presentations made by the Bank's Management.

Mr. Kumar added that these investors included investment authorities of governments, state-owned entities, investment and private banks and non-banking financial institutions. The issue was also well supported by demand from leading financial institutions in the GCC. He affirmed that around 70% of the funds came from new investors and in the allotment process, the Bank and the book runners took care to achieve the Bank's objective of a diversified investor base.

Mr. Tony Bush, Emirates Bank's Division Head (International Banking & Syndications) added that the FRN will carry a coupon of 55 basis points over three months LIBOR and is listed in the Luxembourg stock exchange under the Bank's EMTN programme. He was delighted with the response from a wide range of influential investors within a short marketing time frame. The settlement date for the issue has been set as 28 January 2004.

Mr. Kumar referred to the positive and proactive support received from HSBC and Morgan Stanley, who along with Emirates Financial Services PSC (EFS) were the Co-Lead Managers.