January 24, 2018 / 7:51 AM / 9 months ago

Emirates NBD issues $285 million Formosa bond

DUBAI, Jan 24 (Reuters) - Emirates NBD, Dubai’s largest bank, has priced on Tuesday a $285 million Formosa bond, sources familiar with the matter said.

Formosa bonds, which are notes sold in Taiwan by foreign issuers in currencies other than Taiwanese dollars, have been increasingly popular for Gulf banks over the past few weeks because of the low cost of issuance they guarantee for five-year maturities.

Prior to Emirates NBD’s transaction, major lenders such as First Abu Dhabi Bank, Abu Dhabi Commercial Bank and Qatar National Bank have issued $610 million, $540 million and $720 million in Formosa bonds this year.

Emirates NBD’s bond was led by Cathay United Bank, Credit Agricole and Standard Chartered. It has a 30-year tenor and is callable – or redeemable by the issuer – every five years.

Emirates NBD, majority owned by Dubai’s Investment Corporation, reported a 17 percent rise in fourth-quarter net profit last week boosted by loan growth, interest rate rises and higher sales. (Reporting by Davide Barbuscia, editing by Louise Heavens)

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