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27 February 2013

ADCB Re- Opens T2 Market for Local Issuers

Abu Dhabi, 27 February 2013: Abu Dhabi Commercial Bank PJSC (ADCB), rated A/A+ by S&P/Fitch (all stable outlook), on 26 February priced the first 2013 trade for any UAE bank in the Reg S US dollar bond market (benchmark 5 year senior unsecured notes) and the first ever 10 year bullet subordinated debt Tier II transaction in the history of UAE banks. ADCB once again re-opened the international investor base to local issuers to raise Tier 2 capital. The subordinated Tier II tranche marks the largest subordinated Tier II bond issue out of the MENA region, and the first since 2010.

The two bond issues, USD 750,000,000 2.5 per cent. Senior Notes due 2018 and USD 750,000,000 4.5 per cent. Subordinated Notes due 2023 (compliant with Regulation S of the US Securities Act of 1933) priced at mid-swaps plus 165 basis points and 265 basis points respectively. The deal was joint lead managed by Abu Dhabi Commercial Bank, Barclays Bank PLC, ING Bank N.V., J.P. Morgan Securities plc, and National Bank of Abu Dhabi P.J.S.C. and The Royal Bank of Scotland plc. It was announced following very successful investor roadshows in Geneva, Zurich, London, Hong Kong and Singapore. ADCB met with more than 90 fund managers and private banks with investor demand totaling nearly USD 8 billion when the books closed on 26 February. Demand was equally split between the two issues with over 230 quality accounts across the globe participating, with particular interest from Asia, Europe, the Middle East and Latin America.

Kevin Taylor, Group Treasurer highlighted:ďpricing on the senior and subordinated notes was tightened by 15 basis points in the twenty four hours preceding pricing of the transaction from initial guidance. The deal priced 10 basis points wider than ADCBís outstanding Sukuk issue which exhibits a strong testimony to the demand for ADCB credit.Ē

Deepak Khullar, Chief Financial Officer of ADCBnoted:ďthe simultaneous transactions are ADCBís largest ever debt offering and includes the largest subordinated debt issue by a Middle Eastern bank ever. This is a historic transaction that makes all of us proud and its unprecedented success sets a new benchmark in the region.Ē

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