ADCB starts Malaysian bond programme

Dubai: Abu Dhabi Commercial Bank (ADCB), the UAE's third-largest lender of assets, became the second Abu Dhabi-based bank to tap the Southeast Asian pool of liquidity this year, when it kicked off its 3.5 billion Malaysian ringgit (Dh4 billion) medium-term note (MTN) programme on Monday.

The first phase will see the issue of MYR500 million in five-year bonds, going up to MYR3.5 billion, the bank said.

The National Bank of Abu Dhabi, the country's second-largest lender, last month opened its own debt offering in Malaysia with MYR500 million in Islamic bonds.

ADCB's bond is intended to diversify capital resources for general operational purposes, a spokesperson told Gulf News.

The bond sale will be arranged by Standard Chartered Bank and RHB Investment Bank.

RAM Ratings confirmed ADCB's long-term "AAA" and short-term "P1" financial institution ratings, citing the "strong connection to the governments of Abu Dhabi and the UAE".