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NBAD picks banks for five-year Aussie bond-IFR

Sydney/Abu Dhabi: National Bank of Abu Dhabi (NBAD), the emirate’s largest lender, has mandated four banks to arrange a five-year bond denominated in Australian dollars.

The lender has picked ANZ, Citigroup, HSBC and itself to arrange the Kangaroo bond. NBAD, rated Aa3/AA-/AA-, issued only the second Kangaroo bond from a Middle Eastern issuer on February 28, 2013.

The bank attracted an order book of over A$1.3 billion ($1.17 billion) for a A$300 million five-year offering with a 5 per cent coupon that priced 175bp wide of asset swaps and flat to its US dollar curve.

The only previous Kangaroo deal from the Middle East was in November 2006 when Emirates Bank International, rated A/A1/A, issued an A$250m fixed- and floating-rate three-year Kangaroo that met with a lukewarm response from investors.

Further, the bank expects growth in its loans of 8 to 10 per cent in 2014, chief executive Alex Thursby said on Tuesday. “Loan growth will be good this year but there are also other drivers of growth — current account, trade, forex,” Thursby told reporters on the sidelines of the bank’s annual general meeting.

Last year, NBAD’s net loans and advances rose 11.7 per cent to Dh183.8 billion ($50.0 billion). Late last month, First Gulf Bank, the UAE’s second-largest lender, predicted 2014 loan growth in the “low double digits”.