The EGM, held under the chairmanship of H.E. Khalifa Mohamed Al Kindi, Chairman of the NBAD Board, approved the issuance of a 10 year convertible subordinated bond, in an amount not to exceed AED2 bn and the issuance of medium term notes not to exceed JPY40 bn (AED1.2 bn) and MYR3 bn (AED3.2 bn) respectively.
The EGM authorised the Board of Directors to fix the date of issuance and the terms and conditions.
"Although NBAD is well capitalised, the issuance of medium term notes and a subordinated convertible 10 year bond will put us in a better position to compete with big local, regional and international banks in a very competitive market". Michael Tomalin, NBAD's CE said. "The subordinated convertible bonds and notes will increase NBAD's capital resources and provide additional liquidity to help finance the growth of Abu Dhabi and the UAE more widely. In addition, the subordinated convertible and senior notes will diversify the NBAD investor base and source new pools of liquidity", he explained.
NBAD, UAE's largest bank by assets, has issued nearly AED10 bn of bonds in currencies including UAE Dirhams, US and Australian Dollars, Swiss Francs, British Pounds, and Japanese Yen. NBAD's AGM, held last March, approved the issuance of medium term bonds in Australian currency for the value of 2bn Australian Dollars.
"These new programmes are in addition to our existing note programmes namley US$5 billion Euro Medium Term note programme, 2 bn Australian medium term note programme, and our US$2 billion Euro Commercial Paper (ECP) programme. Raising new money will depend on market conditions and price. The shareholders have given their permission, but the actual issuance will depend on markets and other conditions precedent", Tomalin added.
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NBAD approves issuance of Dhs 6.4 billion bonds
- United Arab Emirates: Thursday, September 06 - 2007 at 13:59
- PRESS RELEASE
The National Bank of Abu Dhabi (NBAD(Extraordinary General Meeting (EGM) held on 5th September 2007 in Abu Dhabi approved the issuance of AED 6.4 billion medium term notes and subordinated convertible 10 year bonds in UAE dirhams, Japanese yen (JPY) and Malaysian ringgit (MYR).
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NBAD raised AED7.3 billion (US$1.98 billion) ending June 2007 out of its US$5 billion EMTN program launched in December 2005 and AED 858 million out of the US$2 billion ECP program that was launched in September 2006.NBAD reported net profits of AED1,185 Million for the first half of 2007, 5% above the 1st half of 2006. Annualized earnings per share were AED1.49 up from AED1.42 (restated) in the comparable period of 2006. The return on equity was 25.4%, in line with the Bank's medium term strategic plan.
For the second quarter, net profits at AED584 Million were up 16% on the corresponding quarter of 2006.
Total assets reached AED124 Billion at the end of the first half of 2007, up 53% on the same period in 2006, with customer deposits up 53% and loans up 29%. Capital resources, including the AED2.5 Billion of subordinated convertible notes, reached AED12.1 Billion, up 17% from the corresponding period in 2006.
Operating income for the 1st half of 2007 was AED1.7 Billion including non-interest income of AED0.6 Billion, 12% up on the corresponding period in 2006. Operating expense growth of 45% was high but within plan, reflecting the planned and continued investment in infrastructure, systems, network and people. The cost income ratio of 28% compares with 22% in the 1st half of 2006, but is well within medium term cap of 35%.
NBAD is rated senior long term/short term A+/A-1 by Standard and Poors, Aa3/P1 by Moodys and AA-/F1+ by Fitch giving one of the strongest combined ratings of any Middle Eastern financial institution.
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Posted by Anne-Birte Stensgaard, Senior News EditorThursday, September 06 - 2007 at 13:59 UAE local time (GMT+4)
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