Dubai: National Bank of Abu Dhabi (NBAD.AD), the biggest lender in the UAE by market value, has mandated banks to arrange a benchmark, seven-year, US dollar bond, a banker aware of the deal said Monday.
Citigroup, JPMorgan, NBAD and Standard Chartered are the joint lead managers and bookrunners for the planned Regulation S transaction, the banker, who declined to be identified, told Zawya Dow Jones. The issue is expected to be launched in the near future subject to market conditions, the banker said.
The initial price guidance for the bond is about 200 basis points over midswaps, the banker added. Several banks in the UAE have issued bonds this year, capitalising on strong demand in debt markets, to secure funding and strengthen their balance sheets. Dubai Islamic Bank launched a $500 million Islamic bond in May, and Abu Dhabi’s First Gulf Bank sold a $500 million Islamic bond in January. Abu Dhabi Commercial Bank in April sold a bond denominated in Malaysian ringgit worth about $100 million.
In a presentation to investors, seen by Zawya Dow Jones, NBAD said it was targeting an earnings level of $4.3 billion by 2021 through 16 per cent average annual profit growth in the next decade. The bank reported a Dh3.7 billion ($1 billion) net profit for 2011.
NBAD, which recently began operations in Malaysia and China amid an uptick in income from international operations, is also looking at expansion in new geographies while growing its foothold in existing markets, the presentation says.
The target for this year is to obtain licenses to operate in five new markets: India, Brazil, Iraq, Lebanon and Juba in South Sudan.
