Emirates NBD is holding off from selling a benchmark dollar bond after Dubai’s biggest bank refused to pay higher rates for the debt, people with knowledge of the matter said.
The lender told investors that it’s watching the market and won’t sell bonds imminently, said the people, asking not to be identified as the matter is private. ENBD doesn’t urgently need the funds and would prefer to wait until markets have calmed, they said.
ENBD held an investor call on November 12 to discuss plans to sell a five-year dollar bond, a person familiar with the matter had said. The bank mandated Australia & New Zealand Banking Group Ltd, Bank of America Corp, Citigroup Inc, Emirates NBD Capital and ING Groep NV as lead managers for the potential sale, the person said.
The extra yield investors demand to hold Gulf debt over US Treasuries climbed three straight days through Wednesday, the longest run since August, according to a JPMorgan Chase & Co index. Oil prices have declined about 25% from a peak in early October.
A benchmark sale usually raises more than $500mn. A spokesman for ENBD declined to comment.
Emirates NBD has reportedly told investors that it’s watching the market and won’t sell bonds imminently
