DUBAI, Nov 15 (Reuters) - Emirates NBD (ENBD), Dubai’s largest bank, has postponed a planned issue of U.S. dollar-denominated bonds due to challenging market conditions, sources close to the matter said.
The bank announced earlier this week that it intended to issue a Regulation S senior unsecured benchmark bond with a five-year maturity.
Benchmark bonds generally total more than $500 million. The paper would have been issued under ENBD’s $12.5 billion bond programme.
The deal has been postponed due to a risk-off tone across emerging markets, said the sources.
A spokesman for Emirates NBD declined to comment.
Borrowers time their debt sales based on market conditions in order to attract sufficient demand at favourable pricing.
Bonds in the Gulf region have been under pressure this month due to lower oil prices and geopolitical concerns, although losses have been limited.
United Arab Emirates’ NMC Healthcare managed to complete its planned debt issuance this week, raising $400 million through the sale of sukuk, or Islamic bonds.
But even in difficult market conditions, sukuk issuers can usually rely on unsatisfied demand from Islamic banks which can only invest in sharia-compliant paper.
One source close to the matter said ENBD might issue the planned bonds next week if market conditions were more stable.
ANZ, BofA Merrill Lynch, Citi, Emirates NBD Capital and ING have been mandated by ENBD as joint lead managers and joint bookrunners for the planned deal. (Reporting by Davide Barbuscia; Editing by Kirsten Donovan)