Business | Banking
NBAD launches $2b floating rate notes
The National Bank of Abu Dhabi (NBAD) announced the launch of its $2 billion settled floating rate subordinated convertible notes due in 2018.
- Staff Report
- Published: 00:45 February 10, 2008
Abu Dhabi: The National Bank of Abu Dhabi (NBAD) on Satur announced the launch of its $2 billion settled floating rate subordinated convertible notes due in 2018.
The notes are being marketed to investors with a floating rate coupon. The rate and the conversion premium will be determined following a book-building exercise.
All payments under the notes will be made at the applicable dollar equivalent amount to the dirham amount then due (to be determined in accordance with the conditions of the notes).
The payment obligations of NBAD in respect of the notes are conditional and will be subordinated to all of its unsubordinated payment obligations.
The notes will only be convertible into the ordinary shares of NBAD during the first five years after issue.
Under UAE law, restrictions on foreign ownership of entities incorporated in the UAE limit the number of shares that may be bought or held by non-UAE nationals.
Unless previously purchased and cancelled, redeemed or converted, the notes are expected to mature on February 28, 2018.
NBAD will have the option, subject to the prior approval of the UAE Central Bank, to redeem in whole the notes at par on or at any time after February 28, 2013.
Marketing of the transaction will commence on February 10 and the bookbuilding is expected to close on February 11.
The notes will be offered to institutional investors in certain jurisdictions outside the US (including US nationals), Canada, Australia, Italy or Japan.
The notes will be listed on the Professional Securities Market of the London Stock Exchange. The shares are listed and traded on the Abu Dhabi Securities Market.
Credit Suisse and Morgan Stanley are acting as joint bookrunners and National Bank of Abu Dhabi as co-bookrunner of the issue. Credit Suisse and NBAD are the joint structuring agents of the issue.
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