Abu Dhabi’s NBAD Raises A$400 Million With Second Kangaroo BondBenjamin Purvis and Shaji Mathew
National Bank of Abu Dhabi PJSC raised A$400 million ($358 million) from its second Kangaroo bond sale, paying half a percentage point less for five-year debt than it did a year ago.
The bonds maturing in March 2019 were priced to yield 125 basis points more than the swap rate, according to an e-mailed statement from Australia & New Zealand Banking Group Ltd., which jointly managed the sale with Citigroup Inc., HSBC Holdings Plc and NBAD. The lender’s inaugural Kangaroo bond in February last year was priced at a spread of 175 basis points. The gap for those notes narrowed to 109 basis points as of today, according to ANZ prices.
A global rally in credit spreads has compressed bank borrowing costs, with the average spread over the swap rate for financial company bonds sold in Australia narrowing to 95 basis points from 114 basis points a year ago, according to a Bank of America Merrill Lynch index.
NBAD, 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 a wider pool of investors. In addition to Australian dollars, the bank sold so-called Uridashi bonds denominated in Mexican pesos to Japanese retail investors.
Abu Dhabi-based NBAD has the fourth-highest investment grade rating at both Moody’s Investors Service Inc. and Standard & Poor’s, data compiled by Bloomberg show.