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On 4 February 2009, and in response to the Government of Abu Dhabi's initiative to inject additional capital into certain Abu Dhabi financial institutions, NATIONAL BANK OF ABU DHABI (NBAD) announced that it will issue Tier 1 capital notes to the Government of Abu Dhabi, with a principal amount of AED 4000 000 000 (the "Notes").

The issuance of the Notes has been approved by NBAD's board of directors on the 2ND OF February 2009, and will be subject to obtaining shareholder approval.

The Notes will bear interest at a fixed rate of 6% per annum payable semi-annually in arrears from (and including) the issue date for a period of five years, and thereafter at a floating rate, reset and payable semi-annually in arrears, reflecting the initial margin above the then prevailing six-month Emirates Interbank Offered Rate (EIBOR). The Notes are non-voting, non-cumulative perpetual securities, and are callable subject to certain conditions.

The Chief Executive of NBAD, Michael Tomalin, welcomed this important and imaginative initiative which will significantly assist the banks in supporting the development of Abu Dhabi. "This will increase NBAD's  capital resources by AED4 billion and would take our Tier One ratio as at 31 December 2008 to 16%", commented Michael Tomalin.

"NBAD's combined capital ratio after the addition of this non cumulative perpetual capital instrument, which is callable by the issuer, would become 18.7% as at 31 December 2008 giving us one of the strongest capital ratios amongst global banks", he said. "This good news comes after us reporting a 46% increase in operating profits in 2008" concluded Tomalin.

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About NBAD

The National Bank of Abu Dhabi (NBAD), The Number One Bank in the UAE, was incorporated in 1968. NBAD has a network of more than 80 branches in the UAE in addition to Cash offices that are spread out at remote locations to provide banking services to customers stationed at offshore oil operations and in desert locations as well as other government organizations.

NBAD also has three Shift offices inside the security areas of the Abu Dhabi International Airport providing currency & traveler's cheques exchange services. The branch network is widened further with more than 250 ATMs through which customers perform a variety of transactions.

Besides brick & mortar branches, NBAD provides 24 hour internet banking accessibility through NbadOnline and NbadDirect, as well as account access and personalized customer support through the 24-hour Call Centre.

NBAD's overseas network stretches from Oman, Kuwait, and Bahrain in the G.C.C., Egypt, Libya, and Sudan in Africa, London, Paris, and Geneva in Europe to Washington D.C. in the U.S.A.

The bank provides its customer with a wide variety of financial services targeted at all segments of the retail and corporate market in addition to Fund Management, Brokerage, Leasing, Property Management businesses and Private Banking.

NBAD is rated senior long term/short term A+/A-1 by Standard and Poor's, Aa3/P1 by Moodys and AA-/F1+ by Fitch giving one of the strongest combined rating of any Middle Eastern financial institution.

NBAD is an award winning leader in the UAE and GCC financial services industry. Awards won by the bank include the Middle East Excellence Award 2008, the Mohamed Bin Rashid Al Maktoum Business Award 2007, the Sheikh Khalifa Excellence Award, Dubai Quality Award, ‘Best Bank in UAE' from Euromoney and Banker publications, ‘Human Resources Development Award' from the Emirates Institute for Banking & Financial Studies, the ‘Middle East e-Banking Country Award', the ‘Outstanding use of IT in Financial Services Award, and excellence award for ‘Best use of Technology' from Banker Middle East.

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