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• First ever Additional Tier 1 public offering by NBAD
• Lowest ever coupon for a USD Additional Tier 1 offering from an Emerging Markets financial institution
• First ever Additional Tier 1 from the Middle East with two investment grade ratings
Abu Dhabi - On June 10th 2015, the National Bank of Abu Dhabi (NBAD), the safest bank in the Middle-East and Emerging Markets, successfully launched its inaugural USD 750mn Additional Tier 1 Perpetual Bond and achieved multiple records in the process.
NBAD initially held a set of investor meetings in Singapore, Hong Kong, London, Frankfurt, Zurich and Geneva, and following strong investor interest decided to launch the transaction on the 10th June with an indicative yield of 5.375% area. On the back of strong indications of interest from investors in all regions, NBAD was able to price the deal at a final yield of 5.25% and which was distributed across the Middle East (33%), the UK (27%), other European countries (19%), Asia (17%) and (4%) US Offshore.
The Additional Tier 1 perpetual bond will further strengthen the bank's capital position and is aligned to the Bank's objective of maintaining strong financial ratios to support the successful execution of its strategic growth objectives.
The issuance was rated Baa3 by Moody's and BBB- by S&P, making it the first ever Tier 1 Eurobond from the Middle East with two investment grade ratings.
Stephen Jordan, the Group Treasurer of NBAD,stated"We consider the deal to be a resounding success, especially given the current volatile market conditions, and a clear sign of support from investors in the strong credit fundamentals of NBAD and in our stated growth strategy."
Andy Cairns, Global Head of Debt Origination & Distribution,said: "As Joint Structuring Bank and Joint Bookrunner on this landmark AT1 transaction, NBAD further demonstrates its market leading structuring and placement capabilities in hybrid bank capital. This is the fourth regional AT1 issue NBAD has led year-to-date."
NBAD and HSBC acted as Joint Structuring Banks for the deal and, along with Citigroup, Morgan Stanley, Societegenerale, as Joint Bookrunners.
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About NBAD
The National Bank of Abu Dhabi (NBAD) has one of the largest networks in the UAE, with an expanding network of 125 branches and cash offices and more than 585 ATMs across the country. NBAD's growing international network consists of about 60 branches and offices in 18 countries stretching across five continents from the Far East to the Americas, giving it the largest global network among all UAE banks.
Since 2009, NBAD has been ranked consecutively as one of the World's 50 Safest Banks by the prestigious Global Finance magazine, which also named NBAD the Safest Bank in the Emerging Markets and the Middle East.
NBAD is rated senior long term/short term AA-/A-1+ by Standard & Poor's (S&P), Aa3/P1 by Moody's, AA-/F1+ by Fitch, A+ by Rating and Investment Information Inc (R&I) Japan, and AAA by RAM (Malaysia) , giving it one of the strongest combined rating of any Global financial institution.
A comprehensive financial institution, NBAD offers a range of banking services including retail, investment and Islamic banking. NBAD grows strategically toward its vision to be recognised as the World's Best Arab Bank.
For more information please visit our corporate webpage at: www.nbad.com.
For further enquiries, please contact:
Michael Miller
Head of Investor, Media & Public Relations
Email: michael.miller@nbad.com
Tel: +971 2 611 2355
Mobile: +971 50 619 7116
Fadeela Khamis
Manager, Media & Public Relations
Email: fadeela.mohamed@nbad.com
Tel: +971 2 611 1511
Mobile: +971 56 616 2265
© Press Release 2015
