National Bank of Abu Dhabi PJSC (NBAD), the United Arab Emirates’ second-biggest bank by assets, will raise $750 million from the sale of seven-year dollar bonds, according to a banker familiar with the deal.
The notes will be priced to yield 180 basis points above the benchmark midswap rate, the banker said, asking not to be identified because the information is private. Citigroup Inc (C:US), JPMorgan Chase & Co. (JPM:US), Standard Chartered Plc (STAN) and National Bank of Abu Dhabi are managing the sale of the securities and the bonds may be priced early this week, the banker said.
The bank, rated the fourth-highest investment grade by Moody’s Investors Service, last sold dollar bonds in March, raising $750 million from the sale of five-year debt. The securities were priced at 190 basis points over the midswap rate, according to data compiled by Bloomberg.
Banks in the Persian Gulf are taking advantage of midswap rates near their lowest in more than 20 years to sell bonds as they seek to raise long-term funds and refinance debt. Governments and companies in the six-nation Gulf Cooperation Council, which includes the U.A.E., Saudi Arabia and Qatar, have raised $26.2 billion from bond sales this year, more than twice the $12 billion sold in the same period last year, according to data compiled by Bloomberg.
The yield on National Bank of Abu Dhabi’s 3.25 percent bonds maturing in March 2017 gained three basis points, or 0.03 of a percentage point, to 2.55 percent at 4:26 p.m. in Dubai. The yield tumbled 32 basis points last month.
The bank on July 24 reported a 2 percent increase in second-quarter profit to 1.05 billion dirhams ($286 million), meeting analysts’ estimates.
To contact the reporter on this story: Arif Sharif in Dubai at email@example.com
To contact the editor responsible for this story: Claudia Maedler at firstname.lastname@example.org