x Abu Dhabi, UAEWednesday 26 July 2017

ADCB hires banks for possible dollar-denominated bond sale

Abu Dhabi Commercial Bank hired banks for a possible dollar-denominated bond sale as companies in the UAE seek to benefit from lower borrowing costs.

Abu Dhabi Commercial Bank (ADCB) has hired banks for a possible dollar-denominated bond sale as UAE companies seek to benefit from lower borrowing costs.

ADCB mandated Barclays, ING Groep, JPMorgan Securities, National Bank of Abu Dhabi and itself to act as joint lead managers and book-runners, the bank said in a statement to the local stock market. The sale may include senior and subordinated parts and the transaction may be done in the near future.

ADCB's bond plan follows Abu Dhabi National Energy Co, the state-controlled power and oil company, raising US$2 billion from the sale of dollar-denominated debt in December. NBAD plans to seek shareholder approval on March 12 for the sale of $500 million of convertible bonds.

Issuers from the UAE are tapping the market this year to benefit from a drop in borrowing costs. The Dubai government sold $1.25bn of bonds last month, with the yield on 10-year securities dropping 40 per cent. The average yield on Gulf Cooperation Council bonds fell 146 basis points in the past year to 3.42 per cent on February 8, according to HSBC/Nasdaq Dubai's GCC Conventional US Dollar Bond Index.

 

* Bloomberg News