Abu Dhabi Commercial Bank will issue a two-tranche bond, which includes one portion that will be used to boost its capital ratios, the bank said in a statement on Sunday.
The United Arab Emirates' third-largest lender by market value will issue a benchmark-sized five-year bond and also a ten-year subordinated deal which will enhance the bank's Tier 2, or supplementary capital.
Benchmark-sized bond is typically at least US$500 million.
The dollar-denominated transaction will be launched "in the near future subject to market conditions," the statement added.
Banks in the UAE will this year aim to repay Tier 2 capital placed with them at the height of the global financial crisis, with some turning to the bond market to avoid servicing expensive debt and risking a sudden 'capital cliff' later on.
Read more: http://www.thenational.ae/business/markets/abu-dhabi-lender-adcb-to-issue-dollar-denominated-bond#ixzz2LoM69eCS
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