First Gulf Bank (FGB) today announced the issuance of mandatory convertible bonds worth Dh3.6 billion ($980 million) to UAE institutional strategic partners.

Maturity date for the bonds is July 2011, and the interest rate to be paid to the bond holders before conversion into shares is 3 months EIBOR + 1 per cent, while the conversion rate has been calculated at Dh28.80, said a statement.

The list of the strategic partners to whom FGB convertible bonds will be issued includes: Mubadala Development Company, Emirates Investment Authority, Abu Dhabi Retirement Pensions and Benefits Fund, Dubai Ventures -a member of Dubai Group, Tasameem, Seven Emirates for Investments and International Trading, Capital Investment, Sanabel, Al Ain International Group, Al Nahdha Investments and Al Tadamoun Investments.

Bonds could be converted into shares after three months from date of issue date at the option of FGB, it said.

The bonds will be used by FGB for its corporate and retail organic growth as well as to fund the organic growth of its associated companies, said the statement. - TradeArabia News Service