ADCB raises Malaysia bond issue to $239.5m

ABU DHABI — Abu Dhabi Commercial Bank, or ADCB, priced a 750 million Malaysian ringgit ($239.5 million) bond on Monday, higher than the initial 500 million ringgit plan, driven by increased investor demand, sources said.

By (Staff Report)

Published: Tue 24 Aug 2010, 11:37 PM

Last updated: Mon 6 Apr 2015, 9:50 AM

“The final size is 750 million ringgit, above the earlier planned size due to investor appetite,” a senior ADCB official told Reuters. The coupon on the conventional bond is 5.20 per cent, two sources familiar with the deal said.

ADCB is the second bank from Abu Dhabi to tap the Malaysian market in the last three months, and the bond issue was managed by Standard Chartered Bank and RHB Investment Bank.

The transaction is expected to be concluded in the first week of September. Malaysia’s RAM Rating Services Berhad or RAM Ratings has maintained AAA and P1 ratings, the highest long and short-term financial institution ratings.

In its assessment, the independent ratings agency said that “comfort is drawn from ADCB’s strong capitalisation levels.” It also highlighted Bank’s strong connection to the government of Abu Dhabi.

In 2009, ADCB became the first GGC bank to issue debt to investors in the United States in reliance on Rule 144A of the United States Securities Act of 1933.

Last week, ADCB Chief Executive Officer Ala’a Eraiqat said that RAM Ratings plays a leading role in providing independent credit opinions that are respected by investors and other market participants.

Also, ADCB Group Treasurer Kevin Taylor said that the deal will be a good source of five year funding well within bank’s cost of funds.

“ADCB’s liquidity position remains strong having raised more than Dh10 billion of new customer liabilities in 2010 and operating with a loans to stable resources ratio as defined by the UAE Central Bank of 91 per cent, at the end of the second quarter,” the treasurer said.


· With inputs from Reuters

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