ID :
44299
Thu, 02/05/2009 - 16:53
Auther :
Shortlink :
https://oananews.org//node/44299
The shortlink copeid
Government of Abu Dhabi announces plans to inject Tier I capital into Abu Dhabi Financial Institutions
Abu Dhabi, February 5, 2009 (WAM) - Following a comprehensive review of the growth strategy of the Abu Dhabi banking sector, and in view of the economic ambitions of the Emirate of Abu Dhabi, the Government of Abu Dhabi, at its initiative, has decided to implement an action plan under which it will inject additional capital into the following Abu Dhabi financial institutions: Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, First Gulf Bank, National Bank of Abu Dhabi and Union National Bank.
Given current global economic conditions, the Government believes that this strategic initiative is an appropriate and proactive response to ensure that the strong confidence in Abu Dhabi's financial institutions is further enhanced.
His Excellency Hamad Al Hurr Al Suwaidi, Member of Executive Council and Undersecretary of the Abu Dhabi Department of Finance, added: "The Government views this capital injection into the banking system as an important step to allow Abu Dhabi financial institutions to remain strong and well-capitalised compared to international peers, and fulfill their role in achieving the Government's vision for the Abu Dhabi economy.
''This initiative by the Government also demonstrates the foresight and commitment of the leadership in maintaining the strength and economic growth of the Emirate of Abu Dhabi through the current global climate, and implementing the bold vision of His Highness Sheikh Khalifa bin Zayed Al Nahyan, President of the UAE and Ruler of Abu Dhabi Emirate and His Highness Sheikh Mohammed Bin Zayed Al Nayhyan, Abu Dhabi Crown Prince and Deputy Supreme Commander of the UAE's Armed Forces, for the prosperity of the Emirate of Abu Dhabi.
Under this initiative, the Government of Abu Dhabi will subscribe for Tier I capital notes (the "Notes") issued by each of the above financial institutions, with a total aggregate principal amount of Dh 16 billion. The Notes will be non-voting, non-cumulative perpetual securities, and will be callable subject to certain conditions.
J.P. Morgan acted as structurer and arranger of the Notes, with Clifford Chance providing legal advice to the Government of Abu Dhabi and J.P. Morgan.
Given current global economic conditions, the Government believes that this strategic initiative is an appropriate and proactive response to ensure that the strong confidence in Abu Dhabi's financial institutions is further enhanced.
His Excellency Hamad Al Hurr Al Suwaidi, Member of Executive Council and Undersecretary of the Abu Dhabi Department of Finance, added: "The Government views this capital injection into the banking system as an important step to allow Abu Dhabi financial institutions to remain strong and well-capitalised compared to international peers, and fulfill their role in achieving the Government's vision for the Abu Dhabi economy.
''This initiative by the Government also demonstrates the foresight and commitment of the leadership in maintaining the strength and economic growth of the Emirate of Abu Dhabi through the current global climate, and implementing the bold vision of His Highness Sheikh Khalifa bin Zayed Al Nahyan, President of the UAE and Ruler of Abu Dhabi Emirate and His Highness Sheikh Mohammed Bin Zayed Al Nayhyan, Abu Dhabi Crown Prince and Deputy Supreme Commander of the UAE's Armed Forces, for the prosperity of the Emirate of Abu Dhabi.
Under this initiative, the Government of Abu Dhabi will subscribe for Tier I capital notes (the "Notes") issued by each of the above financial institutions, with a total aggregate principal amount of Dh 16 billion. The Notes will be non-voting, non-cumulative perpetual securities, and will be callable subject to certain conditions.
J.P. Morgan acted as structurer and arranger of the Notes, with Clifford Chance providing legal advice to the Government of Abu Dhabi and J.P. Morgan.
