FGB's $650m bond issue oversubscribed by 4 times

First Gulf Bank’s $650 million 5-year Euro Medium Term Note Programme (EMTN) conventional bonds issuance, which has a Long-term rating 'A+' by Fitch and ‘A2' by Moody's, has been oversubscribed by four times.

The FGB bonds transaction commenced on October 1 and ended on the same day at a total subscribed value over $2.7  billion.

Lead jointly by Citigroup, Deutsche Bank, HSBC, NBAD and Standard Chartered Bank as joint lead managers and joint book runners, the transaction set the final price for the five-year bonds at 210 basis points above mid-swaps. The EMTN Bonds are listed in London and retain a fixed interest rate of 2.862 per cent per annum.

Proceeds from these bonds, which were issued under FGB's $ 3.5 billion EMTN Programme (EMTN) and were recently updated and approved by the United Kingdom Listing Authority (UKLA), are to be used by the bank for general corporate purposes, to diversify the funding base.



 

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