National Bank of Fujairah (NBF) announced the successful completion of a $350 million five-year bond issuance of Additional Tier 1 with a coupon of 5.875%.
The transaction has received around $1.5 billion in final order book and was oversubscribed by more than four times, according to a press release.
The issuance, which is the bank’s first offering in the international capital markets, is compatible with the Basel III regulatory framework published by the Central Bank of UAE in March 2018.
Vince Cook, CEO of NBF, commented: “We are very pleased to see such a strong reception for our inaugural public issuance and are very encouraged by the robust demand from international and regional investors. This is a testament to our unique credit story, and focused business strategy.”
Proceeds of the issuance will be used to support NBF’s capital base, boost the Tier 1 and Capital ratio, and to diversify the bank’s capital and investor base.
It is worth noting that HSBC Bank plc acted as the offering’s structuring agent on the offering, while Emirates NBD Capital, First Abu Dhabi Bank (FAB), HSBC, JP Morgan, and Standard Chartered Bank acted as joint lead managers and bookrunners
On 16 September 2019, NBF announced an integrated global roadshow to international fixed income investors in Hong Kong, Singapore, Dubai, Abu Dhabi, and London, with a potential benchmark fixed rate resettable USD Regulation S Additional Tier 1 perpetual non-call five year unrated capital securities offering to follow.