Emirates NBD Raises $700 Million Through Asian Lenders

(MENAFN- The Arabian Post) Arabian Post Staff -Dubai

Dubai-based Emirates NBD Bank has launched a $700 million seven-year bullet term loan aimed at lenders across Asia, marking a notable cross-border funding move as regional banks continue to diversify their funding bases amid shifting global liquidity conditions.

The facility carries an interest margin of 100 basis points over term SOFR and includes a $200 million accordion option, allowing the borrower to increase the size of the loan subject to lender participation and market conditions. Mizuho Bank is acting as coordinator, mandated lead arranger, bookrunner, underwriter and facility agent for the transaction, according to market participants familiar with the deal.

The structure of the loan reflects Emirates NBD's strategy of tapping Asian liquidity pools at a time when Asian banks remain active in providing dollar funding to high-grade borrowers from the Gulf. A seven-year bullet maturity, in which the principal is repaid at the end of the term rather than amortised, is less common in the Asian syndicated loan market, which traditionally favours shorter tenors and amortising profiles. Market observers say the successful launch highlights confidence in the bank's credit profile and balance sheet strength.

Emirates NBD is one of the largest banking groups in the Middle East by assets, with operations spanning retail, corporate, investment and Islamic banking, as well as a growing presence in wealth management and international markets. The bank has expanded steadily across the region and beyond, with footprints in the Gulf, Egypt, Türkiye, India, Singapore and the United Kingdom, positioning itself as a regional champion with global reach.

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The pricing of the facility at 100 basis points over term SOFR places it in line with funding costs seen for other investment-grade financial institutions from the Gulf accessing offshore dollar markets. Bankers note that Asian lenders, particularly from Japan, have shown a willingness to support longer-dated exposures to well-rated Middle East borrowers, supported by ample dollar liquidity and a search for yield that remains measured rather than aggressive.

Mizuho's multiple roles in the transaction underline the strong ties between Japanese banks and Gulf financial institutions. Japanese lenders have been among the most active Asian participants in syndicated loans linked to the Middle East, often taking on underwriting risk for high-quality names and providing certainty of funds. This approach has helped borrowers secure longer tenors and flexible terms, even as global loan markets have faced bouts of volatility linked to interest rate expectations and geopolitical developments.

The inclusion of a $200 million accordion option gives Emirates NBD additional flexibility to upsize the facility if demand proves strong. Such features have become more common in large syndicated loans, allowing borrowers to respond quickly to funding needs without launching an entirely new transaction. For lenders, the option provides an opportunity to deepen relationships with core clients while maintaining control over final exposure levels.

Market participants say the deal also reflects a broader trend of Gulf banks increasingly engaging with Asian capital markets, both for funding and strategic partnerships. As trade and investment flows between Asia and the Middle East continue to deepen, financial institutions on both sides are seeking closer ties to support corporate clients operating across these corridors.

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While global monetary policy remains a key variable for funding markets, the use of term SOFR as the benchmark underscores the continued transition away from legacy reference rates and the establishment of SOFR-based pricing as standard for US dollar loans. Borrowers and lenders alike have become more comfortable with the benchmark, and documentation standards have largely stabilised, reducing execution risk for new transactions.

For Emirates NBD, the transaction adds to a diversified funding profile that includes deposits, debt capital markets issuance and bilateral facilities. The bank has consistently emphasised prudent liquidity management and capital strength, factors that are closely scrutinised by international lenders when committing to longer-term exposures.

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