Business | Banking
First Gulf Bank issues Dh3.6b convertible bonds
First Gulf Bank (FGB) on Monday announced the issuance of mandatory convertible bonds worth Dh3.6 billion to UAE institutional strategic partners, following the board.
- Staff Report
- Published: 00:08 July 22, 2008
Dubai: First Gulf Bank (FGB) on Monday announced the issuance of mandatory convertible bonds worth Dh3.6 billion to UAE institutional strategic partners, following the board.
Maturity date for the bonds is July 2011, and the interest rate to be paid to the bond holders before conversion into shares is 3-months Emirates Interbank Offered Rate (EIBOR) plus 1 per cent, while the conversion rate has been calculated at Dh28.80.
The list of UAE strategic partners whose FGB convertible bonds will be issued to, includes: Mubadala Development Company, Emirates Investment Authority, Abu Dhabi Retirement Pensions and Benefits Fund, Dubai Ventures a member of Dubai Group, Tasameem, Seven Emirates for Investments and International Trading, Capital Investment, Sanabel, Al Ain International Group, Al Nahdha Investments, and Al Tadamoun Investments.
The bonds will be used by FGB for its corporate and retail organic growth.
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