Abu Dhabi's FGB delays bond issue as markets volatile

  • Share via facebook
  • Tweet this
  • Bookmark and Share
The sale stands postponed because of

The sale stands postponed because of "volatile markets" (ITP Images)

Abu Dhabi lender First Gulf Bank (FGB) decided to hold off issuing a benchmark $500 million bond due to volatile market conditions, lead arrangers said on Wednesday.

"The sale stands postponed because of volatile markets," one banker from a lead arranging bank told Reuters. Another lead arranger confirmed the decision.

A flurry of issues from the Gulf Arab region in recent weeks has been met with strong investor appetite, but of the three regional banks to price this week, two printed on Tuesday, raising $2.1 billion, pointing to investor fatigue setting in.

Saudi British Bank and Qatar National Bank both launched deals on Tuesday.

Overall, including Abu Dhabi's International Petroleum Investment Co (IPIC's) $2.5 billion issue, total Gulf issuance since Tuesday stood at $4.6 billion ahead of FGB's launch.

A banker said: "They (FGB) decided not to go with the issue as some of their conditions were not met."

He said: "In just the last two days, about $5 billion worth of bonds were lapped up - IPIC, a Qatari bank and Saudi British Bank sold bonds. This was too close."

HSBC, Citi, BNP Paribas, Deutsche Bank and National Bank of Abu Dhabi were hired to manage the sale. (Reuters)

Related:
Companies

Market Performance

First Gulf Bank
17.95
-0.35 -1.91 (%)
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Why PE's back in vogue in the Middle East

Why PE's back in vogue in the Middle East

Confidence is returning to the Gulf’s private equity market after...

The curious case of David Haigh

The curious case of David Haigh

The story of how the former Leeds United boss went from football...

1
How Mashreq hits the sweet spot

How Mashreq hits the sweet spot

Mashreq’s retail operations in a series of Middle Eastern markets...

2
Most Popular
Most Discussed