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ADCB sets guidance for 1st tranche of bonds

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01 Oct 2009 01:54 PM

ABU DHABI - Abu Dhabi Commercial Bank, the United Arab Emirates' third-largest lender by assets, has set price guidance for the first tranche of its $7.5 billion bond programme, an executive said on Thursday.

"It (the guidance) has been priced at 262.5 basis points over U.S. treasuries," the ADCB executive, who did not wish to be identified, told Reuters.

The roadshows were due to conclude in New York later on Thursday, he said.

The bank did not say how big the first tranche would be.

State and corporate issuers in the world's largest oil exporting region have raised more than $17 billion by issuing bonds over the last six months.

The bonds from ADCB, which is majority owned by the Abu Dhabi government, are the latest in a flurry of Abu Dhabi issues, with National Bank of Abu Dhabi and Abu Dhabi National Energy Co earlier this month raising $850 million and $1.5 billion, respectively, for conventional bonds.

Aldar Properties, investment vehicle Mubadala and Dolphin Energy have also sold bonds in recent months.

Many are eyeing further sales as demand rises for high-rate emerging market debt and governments look to boost infrastructure spending to shelter the region's economy from the global financial crisis.

"The net proceeds resulting from the notes issued by ADCB will be applied for its general corporate purposes, which include making a profit," the bank said in its prospectus dated Sept. 17.

Roadshows were held in Hong Kong, Singapore, London and Abu Dhabi and will conclude on Thursday in New York.

HSBC is the lead arranger, while ADCB, BofA Merrill Lynch, Deutsche Bank, BNP Paribas, Commerzbank and Standard Chartered are among international banks arranging the issue.

National Bank of Abu Dhabi's sale of notes last month was the first by a bank in the region for two years, a sign that the credit markets were reviving after the financial crisis.

Source: Reuters

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