x Abu Dhabi, UAE Thursday 20 July 2017

Abu Dhabi lender NBAD plans Australian-dollar bond

National Bank of Abu Dhabi plans to raise at least A$250 million from a potential sale of an Australian dollar-denominated bond.

National Bank of Abu Dhabi said it plans to raise at least A$250 million from a potential sale of an Australian dollar-denominated bond.

NBAD has mandated Australia and New Zealand Banking, Bank of America Merrill Lynch and itself as joint lead managers for an inaugural five-year sale, IFR, a Thomson Reuters service reported earlier.

"We don't need the liquidity, we're just looking for a benchmark transaction," Stephen Jordan said on the sidelines of a financial conference in Abu Dhabi on Wednesday.

NBAD, which wants to increase its international revenue, is diversifying its funding sources and has tapped debt market in Asia frequently, aside from issuing local bonds.

Mr Jordan added that books for the bond - known as a kangaroo bond - are open, and the response from investors has been positive. The deal is expected to close on Thursday.

Separately on Wednesday, NBAD said it launched the sale of a 15-year Uridashi bond worth US$16.6m, which is the first of its kind from the Middle East, North Africa region.

An Uridashi bond is a bond denominated in a foreign currency and sold directly to Japanese household investors.

NBAD raised a 500 million Malaysian ringgit Islamic bond, or sukuk, its third in the south Asian currency in November.

 

* Reuters