National Bank of Abu Dhabi (NBAD) said on Saturday it would sell Dh2 billion ($544.7 million) worth of convertible bonds to help finance investment banking operations and expansion overseas.
The second-largest UAE lender by market said the 10-year floating rate convertible bonds would be listed on the London Stock Exchange, the lender said in a statement.
"It (the bond) will be used for investment banking and for international operations," Stuart Henrickson, General Manager-investment banking group at NBAD told Reuters by telephone.
The bonds would be sold in different markets including the Middle East, Europe and Asia, Henrickson said.
"The notes are being marketed to investors with a floating rate coupon ... all payments under the notes will be made at the applicable US dollar equivalent amount to the dirham amount," the lender said in the statement.
The bank, which is expanding abroad as competition at home intensifies, has applied for a licence to open a representative office in Libya, where it sees long-term potential, and also plans to open offices in Asia, Jordan and Qatar this year, Chief Executive Michael Tomalin said in January.
"Our strategy is to grow organically," Tomalin said. "We do not want to pay large amounts of goodwill to companies."
Abu Dhabi's First Gulf Bank (FGB) said earlier this month it could return to the debt market by selling as much as $2.5 billion (Dh9.13 billion) of bonds that are convertible to shares after delaying a bond sale last year. (Reuters)
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