Abu Dhabi Commercial Bank plans to sell bonds next year in Australian dollars and euros for the first time as part of a $6 billion borrowing programme, the bank's chief executive said on November 22.
Abu Dhabi Commercial (ADCB), the fifth-largest commercial lender by market value in the United Arab Emirates, will sell A$250-500 million in the first quarter with a maturity of 5-7 years, Eirvin Knox told Reuters in Abu Dhabi. The euro bond-sale will follow, he said, without giving details.
ADCB has already raised $3.5 billion in currencies including in Swiss francs, and Singapore and Hong Kong dollars, under a Euro medium term note programme (EMTN) to expand lending, Knox said.
"There is incredible interest for the Middle East right now as investors are comfortable with Middle East risk," he said. The bank is selling bonds in several currencies to diversify its funding base, he said. It expects to sell the remaining $2.5 billion of bonds during the next two years.
The bank last week sold 500 million pounds ($948.9 million) of fixed-rate bonds mainly to institutional investors in Britain, Knox said. The investors offered twice as much money than the bank was looking to raise.
It also sold 1 billion dirhams ($272.3 million) of notes this month that will mature in 2013 and pay a coupon of 6 percent.
Abu Dhabi Commercial will use the money to expand its lending, and finance investments in real estate and industry, Knox said, without being more specific.
The bank, which operates 42 branches in the UAE, is applying for licences in Saudi Arabia, Oman and Qatar, Knox said. The bank operates two branches in India and is seeking to open 10 more.
"Our territory for expansion extends across south Asia to the greater Middle East," Knox said.
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