Abu Dhabi - Mubasher: The National Bank of Abu Dhabi (NBAD) announced on Tuesday the successful launch of its inaugural $750 million additional Tier 1 perpetual bond on 10 June. It reported achieving multiple records in the process.

NBAD previously held a number of investor meetings in Singapore, Hong Kong, London, Frankfurt, Zurich and Geneva, and following strong investor interest, the bank decided to launch the transaction on 10 June with an indicative yield of 5.375% area.

“On the back of strong indications of interest from investors in all regions, NBAD was able to price the deal at a final yield of 5.25% and which was distributed across the Middle East (33%), the UK (27%), other European countries (19%), Asia (17%) and (4%) US Offshore,” a statement by NBAD revealed.

“The additional Tier 1 perpetual bond will further strengthen the bank’s capital position and is aligned to the bank’s objective of maintaining strong financial ratios to support the successful execution of its strategic growth objectives,” NBAD said, adding that the issuance was rated Baa3 by Moody’s and BBB- by S&P, making it the first ever Tier 1 Eurobond from the Middle East with two investment grade ratings.

NBAD and HSBC acted as joint structuring banks for the deal alongside Citigroup, Morgan Stanley, Societe Generale as joint bookrunners.

The Abu Dhabi-listed bank recently reported a net profit increase to AED 1.423 billion for the first quarter of 2014, a rise of 1% year-on-year from AED 1.41 billion and 3.7% quarter-on-quarter.