UNB sets guidance for 5-year bond

Abu Dhabi's Union National Bank has released price guidance for its five-year benchmark dollar bond, due to price later on Tuesday, or Wednesday, a source at an arranging bank said.

The bond issue would be the second from an Abu Dhabi entity in a week, after state-owned International Petroleum Investment Co priced a bumper $3.75 billion three-tranche deal at the end of last week.

Price guidance for UNB's bond was set in the area of 287.5 basis points over midswaps.

Citigroup, Deutsche Bank, HSBC, National Bank of Abu Dhabi and Standard Chartered are lead arrangers for the bond.

Benchmark-sized is normally understood to be at least $500 million.

UNB held a series of investor meetings at the end of September but volatile market conditions meant the roadshows were completed without a deal.

The bond will be issued from UNB's $3bn medium term notes programme, and could be used to help repay a $1bn loan which is due to mature in December.

UNB posted a 7.3 per cent increase in third-quarter profit last week, helped by a surge in net interest income.

UNB shares ended 2 per cent lower on Tuesday, at Dh2.92 ($0.795). Shares are up 5.1 per cent so far this year.

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