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UAE’s ADCB to price $750m 5-year bond

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Reuters – Abu Dhabi Commercial Bank has set final terms for a $750m five-year bond which will price on Monday, a document from lead arrangers said, as demand among international investors for Gulf paper remains strong.

The transaction will price at the tight end of revised guidance of 140-145 basis points over midswaps, according to the document.

At the time of revised guidance being issued, investors had placed orders worth more than $2.25bn for the bond.

Pricing guidance had initially been earmarked as between 150 and 155 basis points over midswaps, lead managers had said earlier on Monday.

Demand for paper from Gulf issuers has been significant in the deals seen so far in 2014, helped by political and economic instability in other parts of the world – such as Turkey – funnelling money to perceived safe-havens like the Gulf.

The limited number of deals from the region so far this year has also bolstered demand for the ones that have priced.

Earlier this month, Dubai Investments Park received orders worth $4bn for its debut $300m sukuk, while Kuwait Projects Company secured bids worth $3bn from investors for its $500m offering in January.

ADCB, Abu Dhabi’s third-largest lender by market value, has chosen Bank of America-Merrill Lynch, Barclays, ING and JP Morgan Chase to arrange its transaction.

It is the bank’s first public debt trade since it printed a $500m floating rate note, due to mature in January 2017, in November.


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