ID :
10923
Thu, 06/26/2008 - 15:49
Auther :
Shortlink :
https://oananews.org//node/10923
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ADCB plans to issue $1.2bn worth of bonds in Far East
Abu Dhabi, June 26 (WAM) - Abu Dhabi Commercial Bank (ADCB), the
emirate's third-largest bank, plans to issue as much as US$1.2 billion
(Dh4.4bn) worth of bonds in Malaysia and Singapore as it looks to tap into growing opportunities in Asia.
Abu Dhabi Commercial Bank agreed in May to pay US$1.2bn for 25 per cent of Malaysia's fourth-largest lender RHB Capital in a bid to exploit commercial relations between the Middle East and Asia.
Ratings agency Ram yesterday assigned a long-term stable rating of AAA to ADCB Finance (Cayman) Limited, a vehicle for the proposed 3.5 billion ringgit (Dh3.9bn) senior unsecured medium-term notes (MTN), it said in a note.
An official at Abu Dhabi Commercial Bank confirmed the MTN programme, but declined to comment on what the funds would be used for or when the first sale would take place. The bank will sell Singapore US$106.1m worth of two-year bonds with a coupon of 4.08 per cent, a source familiar with the deal, who declined to be identified, said earlier yesterday. The fixed rate, semi-annual bond will be settled on June 30, the source said, adding the deal size was raised from US$100m due to strong demand. Standard Chartered Bank is the sole book runner for the deal.
ADCB is the latest Gulf borrower planning to sell ringgit bonds in Malaysia, in the latest move that highlights the rising cost of borrowing in US dollars.
A global credit crunch triggered by defaults on US home loans has made dollar borrowing more expensive, and bets that Gulf states could allow their dollar-pegged currencies to appreciate to dampen inflation has seen dollar assets fall from favour. National Bank of Abu Dhabi (NBAD) plans to sell up to US$925.6m in ringgit-denominated bonds, which could include an Islamic tranche. The Saudi-based Islamic Development Bank plans to sell US$1bn of ringgit-denominated Islamic bonds this year.
Bankers say Gulf firms are trying to diversify their investor base, and that more Islamic banks are looking to raise cash in Malaysia's Islamic bond market, which is more liquid and has a better regulatory framework than local markets. Shares of Abu Dhabi Commercial are down almost four per cent this year, compared with National bank of Abu Dhabi, up more than 11 per cent and First Gulf Bank, which has gained more than 30 per cent.
emirate's third-largest bank, plans to issue as much as US$1.2 billion
(Dh4.4bn) worth of bonds in Malaysia and Singapore as it looks to tap into growing opportunities in Asia.
Abu Dhabi Commercial Bank agreed in May to pay US$1.2bn for 25 per cent of Malaysia's fourth-largest lender RHB Capital in a bid to exploit commercial relations between the Middle East and Asia.
Ratings agency Ram yesterday assigned a long-term stable rating of AAA to ADCB Finance (Cayman) Limited, a vehicle for the proposed 3.5 billion ringgit (Dh3.9bn) senior unsecured medium-term notes (MTN), it said in a note.
An official at Abu Dhabi Commercial Bank confirmed the MTN programme, but declined to comment on what the funds would be used for or when the first sale would take place. The bank will sell Singapore US$106.1m worth of two-year bonds with a coupon of 4.08 per cent, a source familiar with the deal, who declined to be identified, said earlier yesterday. The fixed rate, semi-annual bond will be settled on June 30, the source said, adding the deal size was raised from US$100m due to strong demand. Standard Chartered Bank is the sole book runner for the deal.
ADCB is the latest Gulf borrower planning to sell ringgit bonds in Malaysia, in the latest move that highlights the rising cost of borrowing in US dollars.
A global credit crunch triggered by defaults on US home loans has made dollar borrowing more expensive, and bets that Gulf states could allow their dollar-pegged currencies to appreciate to dampen inflation has seen dollar assets fall from favour. National Bank of Abu Dhabi (NBAD) plans to sell up to US$925.6m in ringgit-denominated bonds, which could include an Islamic tranche. The Saudi-based Islamic Development Bank plans to sell US$1bn of ringgit-denominated Islamic bonds this year.
Bankers say Gulf firms are trying to diversify their investor base, and that more Islamic banks are looking to raise cash in Malaysia's Islamic bond market, which is more liquid and has a better regulatory framework than local markets. Shares of Abu Dhabi Commercial are down almost four per cent this year, compared with National bank of Abu Dhabi, up more than 11 per cent and First Gulf Bank, which has gained more than 30 per cent.
