National Bank of Abu Dhabi Plans Second Sale of Kangaroo Bonds

National Bank of Abu Dhabi PJSC plans to sell Kangaroo bonds, the lender’s second foray into the Australian dollar-denominated debt market, as it diversifies its investor base.

Australia & New Zealand Banking Group Ltd., Citigroup Inc, HSBC Holdings Plc and National Bank of Abu Dhabi are arranging the sale of five-year notes, according to an e-mail from ANZ. The lender is marketing the sale at about 130 basis points more than swaps, according to a person familiar with the matter, who asked not to be identified because the terms aren’t set.

National Bank of Abu Dhabi, which last year hired Alex Thursby from ANZ as its chief executive officer, is selling bonds in currencies from the Mexican peso to Malaysia’s ringgit to tap wider investor pools. Last year, the lender raised A$300 million ($271 million) from Kangaroo bonds and sold 15-year so-called Uridashi bonds denominated in Mexican pesos to Japanese retail investors.

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, 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.

The Abu Dhabi-based bank has the fourth-highest investment grade rating at both Moody’s Investors Service and Standard & Poor’s, data compiled by Bloomberg show.

The yield on National Bank of Abu Dhabi’s 5 percent Kangaroo bonds maturing in 2018 was at 4.64 percent today.

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