Abu Dhabi Commercial Bank has launched a $600 million, five-year bond offer that will price later on Tuesday, with pricing at the tight end of guidance because of strong investor demand.
The fourth-largest lender by market value in the United Arab Emirates set the transaction to price at a spread of 87.5 basis points over mid-swaps, a document from lead arrangers said, tighter than the 90 bps plus or minus 2.5 bps that was given earlier in the day.
Initial guidance was in the area of 95 bps.
"ADCB's price guidance is very attractive versus existing 2019 bonds and will be supported by local investors in the absence of supply of senior bank debt and five-year paper from the region," an overseas investor who participated in the issue told Reuters.
Investor orders grew to nearly $1.5 billion during the afternoon, a source close to the deal said.
ADCB, which is expecting ratings of A/A-plus from Standard & Poor's and Fitch, picked Barclays, ING, JP Morgan and Mizuho to arrange the bond sale.
The U.S. dollar bond will be issued through a special purpose vehicle incorporated in the Cayman Islands, ADCB Finance (Cayman) Ltd, and will be listed on the Irish Stock Exchange.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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