Saturday, May 25, 2013
(This article was first published on Thursday)
DUBAI (Zawya Dow Jones)--National Bank of Abu Dhabi (NBAD.AD) plans to issue $350 million of five-year convertible bonds, it said Thursday.
The bond sale will help diversify the majority government-owned bank's funding sources and investor base, NBAD said in an emailed statement.
NBAD has been an active issuer in recent months, selling debt in Australian and Japanese markets earlier this year. Its shareholders approved up to $500 million of convertible bond issuances in March.
The new bonds, which NBAD expects to come with a 1% to 1.5% interest rate, include an option for the bank to increase the amount issued by up to $35 million, it said. The banks serving as bookrunners also could increase the amount by up to another $35 million if they exercise an over-allotment option.
The conversion price on the bonds is expected to be a 30% premium on the weighted average price of the bank's shares between their launch on Thursday and final pricing. Final terms were expected later on Thursday, the bank said.
Bank of America Merrill Lynch, J.P. Morgan and NBAD itself are arranging the transaction.
Write to Asa Fitch at asa.fitch@dowjones.com
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(END) Dow Jones Newswires
25-05-13 0611GMT
