National Bank of Dubai P.J.S.C. (NBD) announced the pricing of its inaugural US$-denominated subordinated Lower Tier 2 bond offering

The bond was issued under the Bank's US$ 3 billion Euro Medium Term Note Programme and is listed on the London Stock Exchange and DIFX. The Joint Lead Managers and Bookrunners of the issue are Barclays Capital, NBD Investment Bank and UBS Investment Bank.

The transaction was both the first ever Lower Tier 2 US$ deal from a Dubai based financial institution and the largest US$ subdebt issue from the United Arab Emirates to date. Following NBD's US$ 750 million Senior FRN issue in December 2005, NBD wanted to further grow its investor base, diversify funding sources and strengthen its capital base.

The transaction was launched following a five day roadshow covering Hong Kong, Singapore, London, Frankfurt and Vienna. By the end of the roadshow, the orderbook for the transaction was oversubscribed allowing NBD to successfully price a US$500 million transaction at a re-offer spread of US$ Libor+73 basis points and coupon of US$ Libor+70 basis points.

There were over 60 individual orders from a combination of banks, funds, corporations and private banks, including a significant number of institutions that were new to the credit and region. The final breakdown by region saw 46% of the issue being placed in the UK and Ireland, 21% into the Middle East, 18% elsewhere in Europe, 13% Asia and 2% in other geographies.

The Chief Executive Officer of National Bank of Dubai, Mr R. Douglas Dowie said "I am delighted at this result and at the diversity of investor interest the issue has generated. I should like to thank Barclays, UBS and NBD Investment Bank for their support in arranging this issue.'