UAE Federal Bank Planning Second-Ever Sale of Dollar Debt

A lender wholly owned by the federal government of the United Arab Emirates is planning to sell its second-ever international bonds as soon as this month, Bloomberg News reported. Emirates Development Bank, which started operations in 2015 and provides financing to citizens and small- and medium-sized enterprises, could raise $750 million or more, the people said, asking not to be identified because the information is private. The money would go toward supporting companies in sectors considered a priority for the economy, the people said. The bank’s debt is assigned the fourth-highest investment grade from Fitch Ratings, the same as the sovereign. The UAE passed a law in October 2018 allowing the federal government to issue sovereign debt for the first time, enabling its seven emirates to benefit from a higher credit rating and lower borrowing costs. Emirates Development Bank was the first entity to take advantage of the debt law by selling its first debt in 2019. The government has yet to issue a federal bond for the first time. Read more.