NBAD launches $850 million FRN

ABU DHABI — National Bank of Abu Dhabi (NBAD) has successfully launched its inaugural transaction of $850 million, under newly signed $5 billion euro medium term note (EMTN).

By Haseeb Haider

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Published: Wed 28 Feb 2007, 8:31 AM

Last updated: Sat 4 Apr 2015, 8:31 PM

Building on NBAD's improving credit story, lead managers Barclays Capital and Credit Suisse First Boston launched NBAD's inaugural transaction in the international Debt Capital Market by issuing a five-year, $850 million floating rate note (FRN), rated Aa3/A/A by Moody's/S&P/Fitch respectively.

The FRN was priced with a coupon of 3-month US dollar Libor plus 30 basis points(bps) and an issue price of 99.91 per cent, resulting in a yield to investors of 3-month US dollar Libor plus 32 basis points (bps). The transaction settled on December 14, 2005 and the maturity date of the notes is December 14, 2010. NBAD's choice of a five-year maturity was in line with general investor preferences and provides the market with a new liquid benchmark.

The marketing strategy resulted in an order book that was 1.3 times oversubscribed. The issue was diversely distributed with Europe accounting for 41.8 per cent of demand including 11.7 per cent from the UK, the GCC 34.5 per cent, Asia 10.2 per cent and others 13.5 per cent.

The order book comprised 55 initial orders and 47 accounts participated in the transaction. The investor base for the transaction was well diversified and included banks, funds, asset managers, corporations, insurers and government agencies.

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