NBAD issues $465 million convertible bonds

The National Bank of Abu Dhabi (NBAD) has issued $465 million senior unsecured convertible bonds, convertible into ordinary shares of NBAD.

The offering, due in 2018, was increased from an initial amount of $350 million following strong demand from investors during the book-building process.

It may be increased by a further amount of up to $35 million in the event of exercise in full of the over-allotment option granted by NBAD to the Joint Book-runners, exercisable on or prior to June 3rd, 2013.

The offering received strong investor demand; it was more than three times oversubscribed with a quality order-book in excess of $1.5 billon, showing investor demand for NBAD's equity story.

It has a strong distribution across a wide investor base across the UK, France, Germany, Switzerland, and offshore accounts.

"Strong demand from long-only funds allowed us to increase the deal size from $350 million to $465 million and price the deal at the tight end of the range," says Stephen Jordan, the Group Treasurer of NBAD.

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

BofA Merrill Lynch, Barclays and JP Morgan Securities acted as Joint Global Co-ordinators and Joint Book-runners along with NBAD as Joint Book-runner. JP Morgan Securities is settlement agent on the offering.