Font Size

- Aa +

Wed 12 Jan 2011 05:02 PM

Font Size

- Aa +

First Gulf Bank plans $205m bonds

Five-year bonds may be priced to yield about 164 basis points over the benchmark mid-swap rate

First Gulf Bank plans $205m bonds
BOND SALE: First Gulf Bank plans to raise 200 million Swiss francs ($205m) in a sale of five-year bonds (ITP Images)

First Gulf Bank
plans to raise 200 million Swiss francs ($205m) in a sale
of five-year bonds that may be priced to yield about 164 basis points
over the benchmark mid-swap rate, according to three people familiar
with the deal.

Abu Dhabi’s
third-largest lender in November delayed a planned bond sale because
rates weren’t favorable. Borrowers from the Gulf Cooperation Council,
including the UAE and Saudi Arabia, sold $32.6bn
of bonds last year, compared with $42.8bn in 2009, according to
data compiled by Bloomberg.

Issuers in the six-nation group have about
$70bn of debt maturing this year, according to Standard Chartered
Plc.

First Gulf Bank
in October reported third-quarter profit of AED849m($231.2m), topping the median 789.5 million-dirham profit estimate of
eight analysts, according to data compiled by Bloomberg.