Abu Dhabi's FGB delays bond issue as markets volatile

Bank decided not to go with the issue due to unstable market condition in the Gulf

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
Join the Discussion

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

NOTE: Comments posted on arabianbusiness.com may be printed in the magazine Arabian Business

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

All comments are subject to approval before appearing

Further reading

Features & Analysis
Saudi Arabia spends money to make money

Saudi Arabia spends money to make money

Tour of Asia by Saudi Arabia's King Salman advances drive to...

Soft money: will cash transactions soon be a thing of the past?

Soft money: will cash transactions soon be a thing of the past?

The rapid digitisation of banking in the UAE is enabling robots...

Oman gains breathing space with jumbo $5bn bond sale

Oman gains breathing space with jumbo $5bn bond sale

Order books for the issue totalled $20bn, showing that Oman can...

Most Discussed
sponsoredTracking