Commercial Bank of Dubai (CBD) has set up a debut $2 billion notes programme to help finance growth, although it is unlikely to draw on the plan at present due to current market conditions.

"We are setting up an EMTN programme that allows us to issue up to $2 billion worth of bonds," John Tuke, deputy general manager, Treasury and Asset Management at CBD told Reuters.

"We don't have any medium-term borrowings at this stage and in terms of prudently managing the balance sheet and to make sure our maturities are a bit better, we decided to get some medium-term borrowings."    

The bank was unlikely to issue a benchmark senior bond in current market circumstances because the market was "not open", Tuke said.

"We wanted to have the programme in place so we could move quickly at any stage," he said.

HSBC and BNParibas are the lead arrangers. -Reuters