RBL Bank raises $350 million in debut international bond sale
RBL Bank has raised $350 million through its first international bond sale, pricing bonds tighter than initial guidance. Strong investor demand supports funding for GIFT City growth and liability management, while Emirates NBD’s backing strengthens credit quality and investor confidence.
RBL Bank, owned by Emirates NBD, successfully sold its first international bond, raising $350 million from outside the United States. The bank priced the bond at 120 basis points above the five-year US Treasury rate, at 5.79% given the current Treasury yield of 4.59%, lower than the initial guidance of 150 basis points above the Treasury rate.
Initial bids exceeded $2.2 billion, with 75% coming from long-only funds like insurance and pension companies, and the remainder from hedge funds and banks. The funds will be utilized to enhance growth in RBL Bank's GIFT branches and extend liability duration, while also aiding in the refinance of short-term loans against FCNR (B) deposits.
This is RBL Bank's inaugural international bond issuance, rated Baa2 by Moody's, one notch above the sovereign Baa3 rating, due to the expectation of support from its majority shareholder, Emirates NBD Bank.
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