Emirates Bank to increase EMTN programme to USD 3.5 billion

EBI now proposes to increase the size of this programme to US$ 3.5 billion.

Mr. Anis AlJallaf, Managing Director & Chief Executive Officer of the Emirates Bank Group, confirmed that an Extra-ordinary General Meeting (EGM) of the shareholders is being convened for 1st December 2004, to enable them to consider and authorize this proposal.

EBI launched its first five year Euro Bond issue for US$ 230 million under this programme in June 2002 and again, in January 2004, approached the global markets for a second Offering of US$ 250 million. This proved, yet again, to be highly successful and attracted orders of some US$ 800 million. EBI therefore, increased the issue size to US$ 500 million and made pro-rata allocations. This second Offering also achieved a good geographical spread; in that some 92% of the investors emanated from outside the UAE; principally from Europe and Asia.

Mr. AlJallaf added that the EMTN programme enables EBI to plan its mobilization of medium term money, so as to fund its asset book i.e. meet the requirements of projects of long tenor as well as to support, good quality, corporate customers.

Mr. Suresh Kumar, General Manager, Emirates Financial Services PSC (EFS) mentioned that the EMTN programme is versatile; in that, once established, it facilitates issuers to readily respond to "reverse enquiries" from global institutional investors. Besides, the EMTN affords great flexibility in terms of issuing investment instruments such as bonds, FRNs and structured notes; so as to optimize tenor and interest cost. Furthermore, as EBI has a high investment grade rating, its EMTN programme (listed on the Luxembourg stock exchange) carries good global credibility.

Deutsche Bank and J.P. Morgan Chase were the Joint Book-Runners for EBI's first bond issuance in 2002. HSBC and Morgan Stanley were the Joint Book-Runners for the second bond in January 2004. In both instances, EBI's wholly-owned subsidiary, Emirates Financial Services PSC (EFS) acted as the Co-Lead Manager, in addition to its role as the Co-Arranger of the EMTN Programme.

It will be recalled that Emirates Bank Group has been proactive in the regional capital market activities. Its successful medium term fund-raising efforts in the international markets enable it to play a leading role in all strategic, national and regional project finance. Besides, EFS has been assisting and advising other issuers in the GCC with regard to the establishment of similar medium term funding arrangements.

Mr. AlJallaf highlighted EBI and EFS's successful roles as the Mandated Lead Arranger and International Book-Runner, respectively, for Etisalat's landmark cross-border telecom transaction for US$ 2.35 billion.

The proposed increase in the EMTN programme size will further strengthen EBI's funding and balance sheet profile; as well as help it to develop appropriate financing strategies; so as to reinforce its relationship with and broadbase its global investor base.

EBI announced its financial performance to September 2004 recently, which indicated a 41.3% increase in profit over the corresponding period in 2003.