Abu Dhabi’s Lunate Capital and JPMorgan Chase are introducing the first bond exchange-traded fund (ETF) for the UAE’s bond market, Bloomberg reports. The Chimera JPMorgan UAE Bond UCITS ETF is set to debut on the ADX on 26 March. The index “aims to replicate the performance” of the JPMorgan MECI UAE Investment Grade Custom Index, which monitors liquid, USD-denominated debt securities from UAE-based issuers.

The index will cover investment-grade issuances with a face amount of at least USD 500 mn, including those issued by entities such as Mubadala Investment, the Emirate of Abu Dhabi, the UAE government, First Abu Dhabi Bank, Abu Dhabi National Energy Company, and the Investment Corporation of Dubai.

The ETF will distribute dividends in June and December when available, and will have an indicative yield to maturity of 5.4% as of 7 March. The initial offering period runs from today until next Wednesday, 20 March, with an offering price set at AED 3.67 (USD 1).

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