The National Bank of Abu Dhabi (NBAD), one of the 50 safest banks in the world and the safest bank in the Middle East, has successfully issued a MYR500m ($163.4m or Dhs600.1m) Sukuk, its third issuance denominated in Malaysian ringgit (MYR) and the first ever issue of a subordinated debt by a non-Malaysian FI in Malaysia.
The new Sukuk was issued for 15years at a coupon of 4.75% following strong investor demand.
HSBC Amanah Malaysia Berhad, Maybank Investment Bank Berhad, Standard Chartered Saadiq Berhad, and National Bank of Abu Dhabi Malaysia Berhad were the joint lead managers of this transaction.
“We are very pleased that NBAD has set yet another landmark transaction and will continue to show our commitment to a truly Global Debt Platform. This new issue, which also strengthens NBAD’s capital levels, reflects the commitment of NBAD to create a yield curve in MYR to meet the strong investor demand for our credit and fits in very well with our core strategy of diversifying the bank’s funding sources and extending our maturity profile,” said Stephen Jordan, NBAD’s Group Treasurer.
NBAD issued its first ever Sukuk and first issuance denominated in Malaysian ringgit (MYR) in June 2010. The groundbreaking MYR500m issuance will mature in 2015. In December 2010, NBAD issued its second MYR500m, which will mature in 2020. Both issuances received extremely strong investor demand and were oversubscribed, showing strong investor appetite for NBAD’s credit risk.
Recently, NBAD inaugurated its wholly owned subsidiary National Bank of Abu Dhabi Malaysia Berhad (NBAD – Malaysia) in Kuala Lumpur and made Malaysia its regional hub to lead expansion in the country and across Southeast Asia.
Last month, RAM Ratings, the Malaysian premier credit-rating agency, has reaffirmed National Bank of Abu Dhabi PJSC’s (NBAD) respective long and short-term financial institution ratings, at AAA and P1.
The AAA rating of the Group’s Senior Medium-Term Notes ‘MTN’, issued under its existing Islamic/Conventional MTN Programme of up to RM3bn (2010/2030) ‘MTN Programme’, has also been reaffirmed.
NBAD’s long term ratings remain amongst the strongest combined ratings of any financial institution in the MENA region with ratings from Moody’s Aa3, Standard & Poor’s (S&P) A+, Fitch AA-, RAM (Malaysia) AAA and R&I’s (Japan) rating of A+.
Press Release
