The National Bank of Abu Dhabi (NBAD) would issue Dh6.4 billion ($1.74 billion) medium term notes and subordinated convertible 10 year bonds in UAE dirhams, Japanese yen (JPY) and Malaysian ringgit (MYR).

The decision was taken at a bank EGM, held under the chairmanship of Khalifa Mohamed Al Kindi, chairman of the NBAD board. The EGM approved the issuance of a 10-year convertible subordinated bond, in an amount not to exceed Dh2 billion and the issuance of medium term notes not to exceed JPY40 billion (Dh1.2 billion) and MYR3 billion (Dh3.2 billion) respectively.

The EGM authorised the board of directors to fix the date of issuance and the terms and conditions.

“Although NBAD is well capitalised, the issuance of medium term notes and a subordinated convertible 10 year bond will put us in a better position to compete with big local, regional and international banks in a very competitive market”. Michael Tomalin, NBAD’s CE said.

“The subordinated convertible bonds and notes will increase NBAD’s capital resources and provide additional liquidity to help finance the growth of Abu Dhabi and the UAE more widely. In addition, the subordinated convertible and senior notes will diversify the NBAD investor base and source new pools of liquidity”, he explained.

NBAD, UAE’s largest bank by assets, has issued nearly Dh10 billion of bonds in currencies including UAE Dirhams, US and Australian Dollars, Swiss Francs, British Pounds, and Japanese Yen. NBAD’s AGM, held last March, approved the issuance of medium term bonds in Australian currency for the value of 2 billion Australian Dollars.

“These new programmes are in addition to our existing note programmes namley $5 billion Euro Medium Term note programme, 2 billion Australian medium term note programme, and our $2 billion Euro Commercial Paper (ECP) programme. Raising new money will depend on market conditions and price. The shareholders have given their permission, but the actual issuance will depend on markets and other conditions precedent,” Tomalin added.-TradeArabia News Service