RIYADH, 19 April 2006 -- SABB (The Saudi British Bank) recently closed the issuance of a euro 325 million 5-year Floating Rate Note (FRN) under its newly increased $1 billion Euro Medium Term Note (EMTN) Program. "This is SABB's second FRN issue, and the first ever euro-currency denominated international bond issue by any Middle Eastern issuer.
With this issuance, SABB has maintained its position as a pioneer for Saudi banks, having last year been the first in the Kingdom to set up an EMTN Program," John Coverdale, SABB managing director, said.
He said that ahead of the issuance, a senior level SABB delegation visited major financial centers in Europe. The response was very positive, attracting and diversifying the investor base to those investors whose natural currency was the euro, in addition to other investors who continue to be attracted by SABB's strong credit fundamentals.
"This is the highest non-Middle Eastern investor distribution by any GCC financial institution, and the highest distribution into Europe. SABB successfully widened its European investor base, with orders coming in from France, Germany, Austria, Switzerland, Luxembourg, Cyprus, Malta and the UK, including a number of investors who had never previously purchased Middle Eastern bonds," Coverdale said.
"We are delighted to have again led the market in capital markets innovation, with the first ever euro denominated issuance out of the region by any issuer. SABB's success in this issuance is testimony to its credit fundamentals, forward-looking and proactive liquidity management, and a desire to constantly innovate. With its second issuance in as many years, SABB has demonstrated its intent to be an active player in the international debt capital markets, and looks forward to maintaining existing investor relationships and to fostering new ones," Coverdale said.
By Rodolfo C. Estimo Jr.,
© Arab News 2006
