NBAD Issues $465 Million Convertible Bonds
Offer three times oversubscribed
Abu Dhabi (May 25, 2013) – The National Bank of Abu Dhabi
(NBAD) has issued US$465 million senior unsecured convertible bonds,
convertible into ordinary shares of NBAD.
The offering, due in 2018, was increased from an initial amount of
US$350 million following strong demand from investors during the
book-building process.
It may be increased by a further amount of up to US$35 million in the
event of exercise in full of the over-allotment option granted by NBAD
to the Joint Book-runners, exercisable on or prior to June 3rd, 2013.
The offering received strong investor demand; it was more than three
times oversubscribed with a quality order-book in excess of US$1.5
Billon, showing investor demand for NBAD's equity story.
It has a strong distribution across a wide investor base across the UK,
France, Germany, Switzerland, and offshore accounts.
“Strong demand from long-only funds allowed us to increase the deal
size from US$350 million to US$465 million and price the deal at the
tight end of the range,” says Stephen Jordan, the Group Treasurer of
NBAD.
“This issuance shows our commitment to further diversify our funding
sources and investor base. The proceeds will be used for general
corporate purposes,” Mr. Jordan said.
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The Bonds will be issued on or around June 5th, 2013 at par and will
carry a coupon of 1.00% per annum payable semi-annually in arrear
commencing on September 12th, 2013. The initial conversion price has
been set at USD 4.2497, representing a premium of 30% above the
volume weighted average price of the NBAD Shares between launch
and pricing, translated into US dollars at the prevailing USD:AED
exchange rate at pricing of USD 1 = AED 3.6730. Unless otherwise
redeemed, purchased, converted or cancelled, the bonds will be
redeemed at par on maturity on March 12th, 2018, in accordance with
the
terms
and
conditions
of
the
bonds.
The offering of bonds follows the authorisation granted by the
Extraordinary General Meeting of NBAD held on March 12th, 2013.
The maximum number of NBAD Shares that may be issued upon
conversion of the Bonds is 117,655,364 NBAD Shares (assuming the
over-allotment option is exercised in full), representing approximately
2.75% of NBAD’s current issued shares outstanding. It is intended that
an application will be made following settlement for the Bonds to be
included for trading on the Open Market (Freiverkehr) segment of the
Frankfurt Stock Exchange.
BofA Merrill Lynch, Barclays and J.P. Morgan Securities plc acted as
Joint Global Co-ordinators and Joint Book-runners along with NBAD as
Joint Book-runner. J.P. Morgan Securities plc is acted as settlement
agent on the offering.
NBAD is rated senior long term/short term A+/A-1 by Standard &
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Poor's (S&P), Aa3/P1 by Moody’s, AA-/F1+ by Fitch and A+ by Rating
and Investment Information Inc (R&I), giving it the strongest combined
rating of any Middle Eastern financial institution. Moreover, since 2009,
the prestigious Global Finance has rated NBAD in its World’s 50 Safest
Banks, and the safest bank in the Middle East.
- End-
Caption: Stephen Jordan, the Group Treasurer of NBAD
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