NBAD $378mn bond-stock swap given nod

National Bank of Abu Dhabi (NBAD) shareholders approved on Sunday plans to convert 1.39 billion dirhams ($378.4 million) of bonds into stock.

The bank said on February 12 it had priced 2 billion dirhams of convertible bonds. Investors holding 1.39 billion worth of those floating rate notes applied to swap their securities for shares, said Majd Maaitah, senior manager at NBAD Securities Services.

The bonds can be exchanged for 55.8 million shares.

That gives a conversion price of 24.85 dirhams per share, Maaitah said.

The shareholders also approved a 40% cash dividend and 20% bonus shares.

NBAD posted its second-biggest profit ever in the fourth-quarter, beating analysts forecasts, on stock market-related income and said it planned to expand in the Middle East, Africa and Asia.

The bank expects international banking to contribute at least 20% to 25% of operating profit by 2013, up from the current 14%, chief executive Michael Tomalin said.

"We are planning to enter Hong Kong this year and plan to open new branches in the Middle East and Africa," Tomalin told newswire Reuters after the annual shareholders meeting.

NBAD plans to open eight new branches in Egypt to take the total to 30 by the end of this year and add two new branches in Oman and one branch in Sudan, he said. It also plans to open at least 28 branches in the UAE this year.

Abu Dhabi National Properties, a real estate subsidiary owned 40% by the bank, is expected to become operational in the second quarter of this year, Tomalin said. (Reuters)

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