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ADCB delays Malaysian bond sale, slashes potential size

DUBAI — Abu Dhabi Commercial Bank (ADCB) has delayed a bond sale priced in Malaysian ringgit and slashed its potential size due to market conditions, Middle East Economic Digest (MEED) reported, citing bankers.

ADCB was initially expected to raise as much as 1 billion ringgit ($299.2 million) by selling bonds, but this was reduced to 300 million ringgit "due to the poor market conditions", the London-based weekly reported, citing bankers close to the deal.

The bank was planning to sell bonds in three-year and five-year tranches, MEED said, without clarifying when the sale was first due to take place.

"The bank is expected to wait until after Bank Negara Malaysia has held a meeting to set interest rates on August 25, and ADCB has evaluated the market trends following the meeting," said MEED, which is published late on Friday.

ADCB, Abu Dhabi's third-biggest bank by market value, planned to issue as much as $1.2 billion of bonds in Malaysia and Singapore, sources said in June.

The lender agreed in May to pay $1.23 billion for a 25-per cent stake in Malaysia's fourth-largest lender, RHB Capital in a bid to exploit commercial ties between the Middle East and Asia.