ADCB plans Dh2b fund

ABU DHABI — Abu Dhabi Commercial Bank (ADCB) is working on a plan to launch a Dh2 billion, 'The UAE Infrastructure Fund', to meet the multiplying financing needs of the expanding infrastructure development in the country, said Eirvin Knox, Chief Executive Officer of Abu Dhabi Commercial Bank (ADCB).

By Haseeb Haider

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Published: Sun 10 Jul 2005, 10:39 AM

Last updated: Thu 2 Apr 2015, 4:38 PM

Talking to Khaleej Times Eirvin Knox disclosed at the moment the Bank was working-out the Fund that would most probably be launched by the year-end, to finance the mega infrastructure and real estate projects in the country.

The mega investment fund could be launched in phases, as firstly a big portion will be offered to the institutional investors, while a substantial part would allocated for the general public who could subscribe through Initial Public Offering (IPO). "The infrastructure Fund will be listed in the Abu Dhabi Securities Market", said Eirvin Knox, CEO ADCB, after the inauguration of the Business Center, his Bank set-up at the Industrial City Abu Dhabi yesterday.

About idea behind the Infrastructure Fund, which would be first of its kind in the country, Mr. Knox said country has emerged as the epi-center of the development activities not only in the Gulf but also in the entire Middle East, and to finance such projects ADCB's fund will come to the support of developers. He said that there are no plans to set up a real estate company, but the Bank is already involved in financing the real estate sector in a big way by its mortgage products, which were quite popular with real estate investors.

Speaking on ADCB's recent joint venture with Macquarie Bank of Australia for setting-up of an investment bank, CEO ADCB said that this venture will go a long way in the development of the investment banking in the country, by offering innovative financial products and services for the first time.

"We are interested in providing financial advisory services on privatisation, mergers and acquisitions, floatation of IPOs, launching of bonds and derivatives and other services to the public as well private sector", he said.

Asked on ADCB's plan to float Euro Bond, under its ambitious $2.5 billion Euro Medium Term Note (EMTN) programme, he said that for the current year financing needs, a euro bond of $900 million has already been drawn down last week. " It was a great issue, a largest in the Middle East, it got a massive response... and we got a best price of 35 basis points above LIBOR", Eirvin Knox said. He said there were no plans to float any other Euro bond at least by the year-end.

He said that this is an important day for all of us at ADCB as the opening of Business Centre in ICAD is a significant milestone. "Our commitment is to always embrace the new developments in the economy and meet the demands in the industrial market, by taking such steps, we know we can continue to meet the expectations of our customers and fulfill the demands of the new industrial city," said Eirvin Knox.

The new business centre has been developed with a state-of-the-art creative design concept that delivers on ADCB’s focus to continually provide innovative customer orientated products and services. "Every change that occurs at ADCB is a stride forward to accomplish the strategic restructuring plan.''

''The unveiling of our new innovative and state-of-the-art ADCB business centre in Industrial City of Abu Dhabi is the next phase of expressing our distinctive character and communicates the essence of who we are, how we behave and in turn how we are perceived," Knox concluded.

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