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NBAD plans USD 350 million senior convertible bonds

WAM ABU DHABI: National Bank of Abu Dhabi P.J.S.C. (NBAD) has announced plans to sell USD 350 million senior unsecured convertible bonds due 2018 (the “Bonds”) convertible into ordinary shares of NBAD (“NBAD Shares”) with an increase option of up to USD 35 million.

NBAD appointed BofA Merrill Lynch, Barclays and J.P. Morgan Securities plc as Joint Global Co-ordinators and Joint Bookrunners along with National Bank of Abu Dhabi P.J.S.C. (in its capacity as Joint Bookrunner). J.P. Morgan Securities plc will act as settlement agent on the offering, NBAD said in a statement.

Bonds will be issued at par and are expected to carry a coupon of between 1.00% to 1.50% per annum payable semi-annually in arrear. The initial conversion price is expected to be set at 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 the time of pricing.

Unless otherwise redeemed, purchased, converted or cancelled, the Bonds will be redeemed at par on maturity, in accordance with the terms and conditions of the Bonds, according to NBAD.

“The offering may be increased by a further up to USD 35 million in the event of exercise in full of the over-allotment granted to the Joint Bookrunners, exercisable on or prior to 03 June 2013.

“The offering of Bonds will help NBAD diversify its funding sources and investor base and proceeds will be used for general corporate purposes, the bank said in a press release,” the bank said.

The offering of Bonds follows the authorisation granted by the Extraordinary General Meeting of NBAD held on 12th March 2013.

“The final terms of the Bonds are expected to be determined and announced later today and settlement is expected to take place on or about 5th June 2013,” it added.

WAM/MMYS