Emirates NBD hires StanChart for potential Formosa bond -sources

DUBAI, Jan 17 (Reuters) - Emirates NBD, Dubai’s largest bank, has appointed Standard Chartered and other banks to lead a potential Formosa bond issue, sources familiar with the matter said.

Formosa bonds are sold in Taiwan by foreign issuers and are denominated in currencies other than the Taiwanese dollar.

The potential deal would be Emirates NBD’s first public Formosa bond sale.

Emirates NBD declined to comment.

Should it go ahead, Emirates NBD’s Formosa bond would be the latest of a series of similar debt transactions by other Gulf banks over the past few weeks, attracted by the Formosa bond market because of the low cost of issuance of this type of debt instrument.

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, majority owned by Dubai’s Investment Corporation, could price the deal in the next few days, three sources said.

The size of the bond has not been decided but it is likely to be in the range of $400 million, one source said.

Emirates NBD posted a 17 percent rise in fourth-quarter net profit this week boosted by loan growth, interest rate rises and higher sales. (Editing by Jason Neely)