Top UAE lender launches first Kangaroo bonds
Abu Dhabi, March 2, 2013
The National Bank of Abu Dhabi (NBAD), a top UAE lender, has closed its inaugural Kangaroo bond with a coupon rate of 5 per cent and face value of $300 million.
The final order book was more than four times oversubscribed, said a statement from NBAD.
“The launch of this landmark transaction reflects NBAD’s clear commitment to engage with new investors in new markets and geographies which will help to support the Bank’s growth aspirations over the coming years,” said Stephen Jordan, the Abu Dhabi bank's group treasurer.
NBAD’s Kangaroo Bond followed this week’s inaugural Uridashi 15 year bond worth $16.6 million.
“This is a fantastic transaction for NBAD and further reflects our committed strategy of implementing a truly global debt platform. With ongoing access to numerous markets we ensure not only diversification of our investor base but also economic efficiency. The economics of this trade allowed us to gain access to new investors in new geographies with no net new issue premium at all,” added Jordan.
The bond received strong interest from Australian domestic investors. Investors in the bond consisted of 57 per cent asset managers, 15 per cent private banks, 14 per cent banks, 7 per cent insurance companies, and 7 per cent central banks, the NBAD said in its statement.
Geographically, 54 per cent of investors in the bond are from Australia, 41 per cent from across Asia; and 5 per cent from Europe, it said.
The note was offered under NBAD’s AU$2 billion Australian and New Zealand Debt Issuance Program.
Joint bookrunners on the Kangaroo Bond were Australia and New Zealand Banking Group, Bank of America Merrill Lynch and NBAD.-TradeArabia News Service