The UAE-based Commercial Bank of Dubai relaunched its benchmark-sized AT1 capital securities, upsizing it to $550 million from the previous launch size of $500 million, while pricing it at par with a coupon rate of 6.625%, paid semi-annually in arrear.
The perpetual non-call six-year issuance has a yield of 6.625% and a reset margin of US Treasuries plus 225.4bps, with a spread set at yield +6.625%.
IPTs were in an undefined low 7% area.
The orderbook peaked at $825 million, with a final book in excess of $700 million, excluding joint lead manager interest.
The lender, rated Baa1 by Moody’s and A- by Fitch with a stable outlook, mandated Abu Dhabi Commercial Bank, Barclays, Citi, Commercial Bank of Dubai, Emirates NBD Capital, First Abu Dhabi Bank and Standard Chartered Bank as joint bookrunners and joint lead managers.
A listing on Euronext Dublin and Nasdaq Dubai will follow.
In April, CBD redeemed a $600 million AT1 bond, exercising its “call option” on the bonds it had issued in 2020.
(Writing by Bindu Rai, editing by Brinda Darasha)