Clifford Chance has advised on the issuance of Emirates NBD’s inaugural Digitally Native Notes denominated in AED and clearing through Euroclear D-FMI

Clifford Chance has acted as transaction counsel on the issuance by Emirates NBD Bank PJSC of AED 1,000,000,000 4.250% Digitally Native Notes due 2029 issued under its U.S.$20,000,000,000 Euro Medium Term Note Programme. The issuance represents the first ever AED-denominated digital bond issuance, the first Euroclear D-FMI transaction from a UAE issuer, as well as the first digital bond issuance listed on the DFSA’s official list and admitted to trading on Nasdaq Dubai.

The Digitally Native Notes were cleared and settled on Euroclear’s D-FMI, the part of the Euroclear system by means of which the settlement of issuance, transfers and redemption of digitally native notes and related payments are recorded. The Digitally Native Notes have been rated A+ by Fitch and A1 by Moody’s and shall be admitted to trading on Nasdaq Dubai with effect from on or around 16 January 2025. ENBD Capital, First Abu Dhabi Bank, Mashreqbank and Standard Chartered Bank acted as joint lead managers on the transaction.

The transaction, representing the third in the MENAT region, adds to Clifford Chance’s growing roster of digital bond transactions – with the team having recently advised on the first ever digital gender bond by Akbank as well as the first issuance of digital notes with SOFR-based interest by Doha Bank.

The international Clifford Chance team advising on the transaction was led by Stuart Ure (Head of Middle East Capital Markets), Alexander Tollast (counsel), and Alekhya Prakash (counsel), with support from Veronica Valerio (associate), Alvin Boateng (trainee) and Lea Assaf (trainee).

Partner Stuart Ure said, “We are privileged to have been a part of this ground-breaking transaction which marks growing confidence in the region in digital bonds and, in particular, contributes to further deepening the domestic capital markets given the AED denomination and DFSA/Nasdaq Dubai listing and trading. We are also delighted to have supported Emirates NBD with their innovative funding platforms and strategies”.

The Clifford Chance team advising Citibank N.A., London Branch as DNN Agent and Fiscal Agent consisted of Partner Bruce Kahl, Andrew Whelan and Callum Florence.