Business | Banking
NBAD announces final terms for $2b convertible bond issue
UAE lender seeks to raise money to implement its growth strategy.
- Staff Report
- Published: 00:20 February 13, 2008
Dubai: National Bank of Abu Dhabi PJSC (NBAD) yesterday announced the final terms for its $2 billion settled floating rate subordinated convertible notes due 2018.
Following marketing to domestic and international investors, the final terms of the issue have been determined. The notes will pay a floating rate coupon of three months Emirates Interbank Offered Rate (Ebor) minus a spread of 0.25 per cent, to be payable quarterly in arrear. The conversion price of Dh30.55 represents a conversion premium of 30 per cent to the reference share price of Dh23.50 per NBAD share. All payments under the Notes will be made at the applicable US dollar equivalent amount of the dirham amount then due (to be determined in accordance with the conditions of the notes).
"We are very pleased with the support from institutional investors for NBAD. This further strengthens NBAD's position and provides capital for our growth strategy," Michael Tomalin, NBAD's chief executive, said.
Application has been made to list the notes on the professional securities market of the London Stock Exchange. The shares are listed and traded on the Abu Dhabi Securities Market.
Lock-in period
Subject to certain exceptions, NBAD has agreed to a 90-day lock-in period with respect to any issuance, offer or sale of equity-linked securities, Shares and options or the announcement to do any of the foregoing.
Credit Suisse and Morgan Stanley are the joint bookrunners and National Bank of Abu Dhabi as co-bookrunner. Credit Suisse and National Bank of Abu Dhabi are joint structuring agents.
"We are very pleased with the support from institutional investors for NBAD. This further strengthens NBAD's position and provides capital for our growth strategy," said NBAD chief executive, Michael Tomalin.
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