NBAD Debuts Kangaroo Debt in First Middle-East Sale Since CrisisBenjamin Purvis
National Bank of Abu Dhabi PJSC sold A$300 million ($308 million) of five-year Kangaroo bonds, the first Australian dollar-denominated notes by a Middle Eastern-based company since before the global financial crisis.
The 5 percent notes maturing in March 2018 were priced to yield 175 basis points more than the benchmark swap rate, according to a person familiar with the matter, who asked not to be identified because the terms are private. The sale would be the company’s first Kangaroo bond, according to data compiled by Bloomberg.
The United Arab Emirates’ second-biggest lender by assets last sold Australian dollar debt in 2007, offering A$30 million of one-year floating-rate securities outside the South Pacific nation, according to the data. Emirates Bank International PJSC’s A$250 million of notes in November 2006 was the first Kangaroo by a Middle Eastern borrower, the data show.
NBAD said last month that it planned to sell bonds after reporting a higher-than-expected increase in fourth-quarter profit. Banks in the U.A.E. are recovering from the credit crisis, which slowed lending, hurt investment banking and sparked a crash in property prices.
Today’s sale was jointly managed by Australia & New Zealand Banking Group Ltd., Bank of America Corp. and the borrower, the person said.
Moody’s Investors Service rates the Abu Dhabi-based bank at Aa3, its fourth-highest investment grade, while Standard & Poor’s ranks it one step lower at A+, data compiled by Bloomberg show.