NBD subscribes to Bahrain investment firm's $25m bond

ABU DHABI — National Bank of Dubai was among a group of regional banks, which subscribed to the first bond issue of Bahrain's Esterad Investment Company (Esterad) for a value of $25 million.

By A Staff Reporter

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Published: Thu 28 Jul 2005, 10:24 AM

Last updated: Thu 2 Apr 2015, 2:48 PM

In addition to National Bank of Bahrain and SICO, the lead managers of the bond issue, other institutions who subscribed to the facility included Gulf International Bank, Arab Banking Corporation, The Arab Investment Co., National Bank of Dubai ,Bank of Bahrain & Kuwait, and Arab Bank.

The bond issue was made on a private placement basis in Bahrain and other GCC countries. The bonds, in denominations of US100,000 each, carry a tenor of five years from their date of issue and will pay 1.25 per cent above the London Inter Bank Offering Rate for six months US Dollar deposits (LIBOR), subject to a minimum coupon of 3.0 per cent per annum. Interest will accrue on the bonds from their date of issue in July 2005 with the interest payments scheduled every six months. It is the only investment company listed on the Bahrain Stock Exchange. Esterad has a 30-year trading history and the shareholders' equity is currently over $135 million distributed amongst 4,400 shareholders.

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