Emirates NBD to Launch First Middle East AT1 Bond Sale Since Conflict Outbreak

Emirates NBD is moving to strengthen its capital position by issuing Additional Tier 1 (AT1) bonds, signaling a return to the high-yield bank debt market for the region. The Dubai-based lender has already begun the process of engaging with the international investment community to gauge appetite for the offering. The move is particularly noteworthy as it represents the first AT1 issuance by a Middle Eastern financial institution since the start of the current war. This suggests that a window of opportunity is reopening for regional lenders to tap international capital markets despite ongoing geopolitical tensions. According to sources familiar with the matter, the bank has hired underwriters to facilitate a series of investor meetings. These discussions will take place both virtually and in-person in London. The proposed debt will be denominated in US dollars and is expected to be callable after a six-year period. AT1 bonds are the most junior form of bank capital and carry the highest risk for investors, as they can be written down or converted to equity during periods of financial stress. A successful placement by Emirates NBD could serve as a benchmark for other regional banks, potentially lowering the cost of capital for the sector and indicating a normalization of risk appetite for Middle Eastern financial assets.