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Abu Dhabi - National Bank of Abu Dhabi (NBAD), the safest bank in the Middle East and in Emerging markets,has become the first bank to operate as a Securities Lending and Borrowing Agent for the UAE market, after it was granted approval bySecurities & Commodities Authority (SCA).
This achievement illustrates NBAD's leadership position in the market. In addition to being currently the only SCA-licensed Securities Lending and Borrowing Agent, NBAD is the UAE's first licensed custodian bank and first and only official market maker since April 2014.
Jonathan Titone, Executive Director - Head of Product Development ofGlobal Wealth at NBAD, said: "The combination of these capabilities will allow NBAD to offer its institutional clients a distinctive opportunity to earn incremental revenue on share positions which would have otherwise remained dormant and likely add liquidity and efficiency to the market. This sets up another milestone in our strategy to build the best Arab Bank in the world."
For clients choosing to participate in the program, securities lending and borrowing transactions facilitate the temporarily transfer of the title of their securities to NBAD as a borrower for use in market making activities. Collateral will be posted to the lender and lenders will earn revenue from use of their shares. As the borrower, NBAD is obliged to return the securities to the lender at a later agreed date, or on demand.
Mr. Titone added: "We are proud to be the first UAE Securities Lending and Borrowing Agent, and to reaffirm our leading role in local and regional capital markets. It represents another step forward in the market's impressive development journey; the program will increase market efficiency and liquidity in supporting market making activities, thus providing for greater market complexity."
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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
