Union National Bank says plans to tap bond market

Union National Bank plans to tap bond markets "shortly" under its existing bond programme, subject to market conditions, the Abu Dhabi-based lender said on Tuesday.

It did not provide any further details on intended size of the offering, timeframe, or mandated banks to arrange the potential sale.

The lender last tapped global debt markets with a US$400m bond, maturing 2016, in November last year, which carries a 3.875 percent coupon.

The bond was bid at a yield of 2.5 percent on Tuesday morning according to data provided by Deutsche Bank Autobahn, substantially lower than yields of over 4 percent earlier this year.

However, a general softness in the market in the approach to the year-end has pushed yields wider by over ten basis points from a month ago, according to Thomson Reuters data.

Last week, Moody's affirmed UNB's rating long-term A1 rating but cut the outlook to negative from stable on expectations that the bank's asset quality will remain under pressure over the next 12 to 18 months.

The lender reported forecast-beating third-quarter profit in October after reversing losses from financial instruments during the three months to September 30.

Shares in UNB are up 5.2 percent year to date.