Business | Banking

Abu Dhabi Commercial Bank issues Dh1b notes

Abu Dhabi Commercial Bank (ADCB) has completed the issuance of Dh1 billion of notes, maturing in 2013. The notes pay a semi-annual fixed rate coupon of 6 per cent. Standard Chartered is the sole lead manager and book runner of this transaction.

  • Staff Report
  • Published: 00:00 November 17, 2006
  • Gulf News

Dubai: Abu Dhabi Commercial Bank (ADCB) has completed the issuance of Dh1 billion of notes, maturing in 2013.

The notes pay a semi-annual fixed rate coupon of 6 per cent. Standard Chartered is the sole lead manager and book runner of this transaction. The issue is a senior obligation of ADCB and is the first and largest fixed rate Dirham bond issue from a non-government Issuer from the UAE.

The notes are issued off ADCB's $6 Billion Euro Medium Term Note Programme. The Issue is rated Aa3/A by Moody's and Standard & Poor's respectively. This is the highest rating given to any instrument from a bank in the Middle East.

The Issue was very well received by both UAE and regional investors, with the transaction being substantially over-subscribed. The participants in the Issue were well-diversified with over 35 per cent of the final order book being subscribed by non-banking Financial Institutions.

Deepak Kohli, Global Head Debt Capital Markets, Standard Chartered, said: "This is the third AED transaction to be done in the last two months, and we have lead all three transactions. We commend ADCB for testing the fixed rate markets in dirhams and believe transactions of this nature can be a catalyst in the development of the local currency capital markets. "

Eirvin Knox, Chief Executive Officer of ADCB, said: "The Dirham market opens a new avenue for us in raising medium/long term financing. This issuance will help build the profile and liquidity of local currency capital market transactions."

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