Abu Dhabi's ADCB sells $300m of subordinated bonds

Deal comes just over two months after its last debt markets outing
By Reuters
Wed 22 May 2013 04:55 PM

Abu Dhabi Commercial Bank will sell $300 million in a subordinated bond on Wednesday, according to the deal arranger, just over two months after its last debt markets outing.

The lender had aimed to issue a benchmark-sized subordinated bond in a swift one-day deal.

'Benchmark'-sized for investment grade companies in the region is usually understood to mean at least $500 million.

But sole lead arranger Standard Chartered said in a sales update seen by Reuters that the deal size would be capped at $300 million, and price guidance had been revised to 220-225 basis points over five-year midswaps.

Final guidance was tighter than early price talk for the 10-year deal, which is not redeemable for five years, of 230 basis points over five-year midswaps.

Orders for the deal were in excess of $500 million, the sales update said, with launch and pricing expected later on Wednesday.

ADCB last tapped debt markets for a two-tranche $1.5 billion bond in late February, made up of senior and subordinated notes. Proceeds of its last subordinated notes were to be used to enhance the bank's Tier 2, or supplementary, capital.

It raised 150 million Swiss francs ($154.48 million) for a lower Tier 2 deal earlier this month.

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