Abu Dhabi Commercial Bank to sell USD 300mn bond on May 22

By bne IntelliNews May 22, 2013

Abu Dhabi Commercial Bank (ADCB), the UAE's third biggest bank by market value, will sell a USD 300mn subordinated bond on Wednesday, May 22, and has already lured more than USD 500mn in offers, Reuters reported, citing a sales update from Standard Chartered, the sole lead arranger of the transaction.

ADCB initially wanted to sell a benchmark bond which is usually worth USD 500mn. The price guidance was reportedly set at 220-225 bps over five-year midswaps, which is below the initial price guidance amid strong offers.

In February, ADCB raised USD 1.5bn from a dual-tranche USD-denominated bond issue. A USD 750mn five-year tranche earned 2.578%, or 165bps above midswaps. Another USD 750mn ten-year tranche yielded 4.61%, or 265bps above midswaps.

ADCB, which is 60%-owned by Abu Dhabi, is rated A1/A/A+ respectively by Moody's, S&P and Fitch with a stable outlook.

Abu Dhabi Commercial Bank’s net profit rose 5% y/y to AED 903mn (USD 246mn) in Q1 2013.

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