Dubai, UAE - National Bank of Dubai's shareholders met today at the Bank's Extra-Ordinary General Meeting.
During the meeting, NBD's shareholders unanimously approved the issue of bonus shares in the ratio of one for every five held (1:5) with the date of claim set to be November 20, 2005. Accordingly, all investors holding NBD shares will be at close of trading on November 17, 2005, will be entitled to receive one fully paid, ordinary share for every five held by November 27, 2005.
Furthermore, the EGM approved issuing a debut bond in the international capital markets, having mandated Bank of America and HSBC to act as joint lead managers and book runners. It is expected that this will be a benchmark sized floating rate issue, with a maturity of 5 years. It is likely that the bond will be formally launched by the end of November. Aiming to achieve a strong take-up by investors outside the Middle East, senior management from the Bank will be undertaking a road show in the course of the next two weeks to visit investors in Asia and Europe.
As part of this process the Bank has taken key steps to ensure that it will achieve greatest benefit and maintain a strong long-term presence in the market. In the first place, as was previously announced, it has acquired international long-term credit ratings of A1 and A from Moody's and Standard & Poor's respectively (the highest ratings that these agencies award to Dubai-based banks).
Simultaneously, National Bank of Dubai has also established a US$ 1.0 billion Euro Medium Term Note Programme, which will provide the platform for multiple and ongoing bond issuance over time. The programme is to be listed on the London Stock Exchange, as is the inaugural bond issue.
"This is a significant step forward for National Bank of Dubai in terms of diversifying our investor base and developing a diversified funding platform," stated Douglas Dowie, CEO, National Bank of Dubai. "We are excited about taking our credit story onto the road and fully expect the bond issue to be a major success."
Further details pertaining to the bond issue will be disclosed closer to the time of issuance.
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About the National Bank of Dubai
Founded in 1963, the National Bank of Dubai is the oldest, locally incorporated bank in the Southern Gulf. Recognized as the bank with a performance that is second-to-none, NBD has built a reputation of stability and strength much appreciated by shareholders and customers alike.
Offering diversified financial services, NBD is a leader in corporate banking. Its portfolio covers a wide range of services including transport, real estate, construction, manufacturing, tourism and service industries throughout the region. In addition, NBD's 'Private Office' provides private banking services, offering highly tailored solutions to preserve and protect the personal wealth of its customers. Along with supplying customers with a variety of exclusive service based products, secured facilities, Credit Cards, personal loans, , auto loans and home loans, the National Bank of Dubai also offers a variety of treasury products and services, advising customers on exchange markets and interest rate outlook. NBD, also recently launched Suhail Priority Banking Services, a premier banking service offering customers personalized relationship management and a host of exclusive products and services. Furthermore, NBD presents their customers with automated banking services, which consist of an internet service (NBD Online), a telebanking facility (NBD Telebank), and an SMS based service (NBD Mobile). With a comprehensive card portfolio that provides an array of benefits, the National Bank of Dubai has, over the years, built a wide ATM network as well as Point of Sale terminals in select locations throughout the UAE.
The National Bank of Dubai currently has an extensive branch network that includes 39 branches throughout the UAE. In addition, NBD also has a branch in London and a representative office in Tehran.
Press release issued on behalf of the National Bank of Dubai by Hill & Knowlton Dubai.
For further information please contact:
Nada Lotfy
Tel: 971 4 3344930
Fax: 971 4 3344923
Email: nada.lotfy@hillandkonwlton.com
© Press Release 2005
