Media Release

NBAD Launches $750mn Additional Tier 1 Perpetual Bond

First ever Additional Tier 1 public offering by NBAD

Lowest ever coupon for a USD Additional Tier 1 offering from an Emerging Markets financial institution

First ever Additional Tier 1 from the Middle East with two investment grade ratings

Abu Dhabi, UAE (June 16th, 2015): On June 10th 2015, the National Bank of Abu Dhabi (NBAD), the safest bank in the Middle-East and Emerging Markets, successfully launched its inaugural USD 750mn Additional Tier 1 Perpetual Bond and achieved multiple records in the process.

NBAD initially held a set of investor meetings in Singapore, Hong Kong, London, Frankfurt, Zurich and Geneva, and following strong investor interest decided to launch the transaction on the 10th June with an indicative yield of 5.375% area. On the back of strong indications of interest from investors in all regions, NBAD was able to price the deal at a final yield of 5.25% and which was distributed across the Middle East (33%), the UK (27%), other European countries (19%), Asia (17%) and (4%) US Offshore.

The Additional Tier 1 perpetual bond will further strengthen the bank’s capital position and is aligned to the Bank’s objective of maintaining strong financial ratios to support the successful execution of its strategic growth objectives.

The issuance was rated Baa3 by Moody’s and BBB- by S&P, making it the first ever Tier 1 Eurobond from the Middle East with two investment grade ratings.

Stephen Jordan, the Group Treasurer of NBAD, stated “We consider the deal to be a resounding success, especially given the current volatile market conditions, and a clear sign of support from investors in the strong credit fundamentals of NBAD and in our stated growth strategy.”

Andy Cairns, Global Head of Debt Origination & Distribution, said: “As Joint Structuring Bank and Joint Bookrunner on this landmark AT1 transaction, NBAD further demonstrates its market leading structuring and placement capabilities in hybrid bank capital. This is the fourth regional AT1 issue NBAD has led year-to-date.”

NBAD and HSBC acted as Joint Structuring Banks for the deal and, along with Citigroup, Morgan Stanley, Societe generale, as Joint Bookrunners.


Caption: Stephen Jordan, the Group Treasurer of NBAD