UAE. National Bank of Abu Dhabi (NBAD) said on Saturday it would
sell AED 2 billion (US$545 million) worth of convertible bonds to help
finance investment banking operations and expansion overseas.
The second-largest United Arab Emirates lender by market value said
in the 10-year floating rate convertible bonds would be listed on the
London Stock Exchange.
"It (the bond) will be used for general corporate purposes,
including growth in lending, retail, investment banking and expansion
into new businesses," Stuart Henrickson, General Manager, Investment
Banking group at NBAD told Reuters.
The bonds would be sold in different markets including the Middle East and Europe, Henrickson said.
"The notes are being marketed to investors with a floating rate
coupon....all payments under the notes will be made at the applicable
US Dollar equivalent amount to the dirham amount," the lender said in
the statement, adding that they would be convertible during the first
five years after issue.
NBAD said in July it wanted to sell bonds worth as much as Y40
billion (US$372 million) and as much as MYR 3 billion (US($789 million).
The lender launched a US$5 billion Euro Medium Term Note programme
in 2006 and had sold almost US$1.5 billion of bonds in currencies such
as Swiss francs and sterling by March 2007.
The bank, which
is expanding abroad as competition at home intensifies, has applied for
a licence to open a representative office in Libya, where it sees
long-term potential, and also plans to open offices in Asia, Jordan and
Qatar this year, Chief Executive Michael Tomalin said in January.
"Our strategy is to grow organically," Tomalin said. "We do not want to pay large amounts of goodwill to companies."
Abu Dhabi's First Gulf Bank said earlier this month it could return
to the debt market by selling as much as US$2.5 billion of bonds that
are convertible to shares after delaying a bond sale last year.
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