National Bank of Abu Dhabi Said to Sell $750 Million Bonds
National Bank of Abu Dhabi PJSC, the United Arab Emirates’ second-biggest bank, will raise $750 million from a sale of dollar bonds, according to three people familiar with the plan.
The five-year securities may be priced to yield 190 basis points over the midswap rate, said the people, declining to be identified because the information is private. Barclays Plc (BARC), HSBC Holdings Plc (HSBA), UBS AG (UBSN) and National Bank of Abu Dhabi are managing the offering, they said. NBAD sold $850 million of five-year notes in 2009 at a similar spread over midswaps.
National Bank of Abu Dhabi has $308 million of bonds and interest payments due this year, according to data compiled by Bloomberg. The bank continues to monitor opportunities in global markets as part of its strategy to diversify the funding base and extend maturities of its liabilities, Stephen Jordan, the state-controlled lender’s general manager of the liquidity management & interest rates product group, said on Feb. 15.
U.A.E. banks are recovering from the credit crisis, which slowed lending, hurt investment banking and increased loan defaults. National Bank of Abu Dhabi said in January profit rose about 1 percent to 3.71 billion dirhams ($1 billion) in 2011.
Several Abu Dhabi-based banks have sold bonds over the past few months. First Gulf Bank PJSC (FGB), owned by Abu Dhabi’s ruling family, raised $500 million from the sale of five-year Islamic bonds in January. Abu Dhabi Islamic Bank (ADIB) PJSC, the emirate’s biggest Shariah-compliant lender, also sold $500 million of five-year sukuk in November, while Union National Bank PJSC raised $400 million from five-year bonds that month.
NBAD’s shares closed 0.8 percent higher to 12.1 dirhams in Abu Dhabi today. They have risen 11 percent this year, compared with an 8.4 percent increase in the benchmark index.
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