First Gulf Bank (FGB) said on Tuesday it has issued $500 million (Dh1.83 billion) five-year bonds under its $3.5 billion Euro Medium Term Note (EMTN) programme, which are set to mature on January 14, 2019. The bank said in a statement that the transaction took place on November 5, registering a final price for the bonds at 180 basis points (bp) above interpolated midswaps, lower than previous spreads of 287.5bp and 210bp for FGB’s January 2012 sukuk issuance and its October 2012 EMTN transactions respectively.
“The final price of the transaction is the lowest we have achieved to date for our bond issuances, which is due to the bank’s consistently strong financial performance, expansion activities and solid ratings,” Andre’ Sayegh, chief executive of First Gulf Bank, said in a statement.
According to FGB, the transaction was jointly led by Bank of America Merrill Lynch, Citigroup, Deutsche Bank and HSBC Holdings, and that the proceeds from these bonds will be used by FGB to contribute towards its medium-term funding plan.
The bank further stated that its bonds have received positive endorsement from its investors, who registered a total oversubscription of 2.8 times, accumulating an order book of $1.4 billion.