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First Gulf sets guidance for bond worth $500m

Gulf News

Abu Dhabi: The UAE's First Gulf Bank has set price guidance for a 3-year benchmark dollar bond at 250-275 basis points over midswaps, a banker close to the transaction said.

"The price guidance is 275… [which] is still on the higher side. It may come to 250," said the banker, who declined to be identified.

The size of bond, to be used for expansion and general corporate purposes, would be about $500 million and the deal would close on Thursday, he added.

The bond is the latest in a flurry of issues from the Gulf. On Tuesday Qatar raised $7 billion from a three-tranche bond as demand rises for high-rating emerging market debt.

"The response was very good. Investors liked the credit story of First Gulf Bank and Abu Dhabi, but because of an excess supply and being the end of the season investors are allocating less," the banker said.