By Angela McDaniels
Tacoma, Wash., Sept. 30 – National Bank of Fujairah PJSC priced $350 million of perpetual bonds with a 5 7/8% coupon, or Treasuries plus 430.1 basis points, on Sept. 24, according to a bank news release.
The Regulation S bonds are non-callable for five years and qualify as additional tier 1 capital.
Emirates NBD Capital, First Abu Dhabi Bank, HSBC Bank plc, JPMorgan and Standard Chartered Bank were the joint lead managers and bookrunners. HSBC acted as a structuring agent.
The Dubai-based bank said this is its debut offering in the international capital markets.
The issuance follows a roadshow in Hong Kong, Singapore, Dubai, Abu Dhabi and London.
Initial price thoughts were in the low to mid 6% area. Final pricing came 62.5 bps inside the wider end of the initial price.
The order book totaled more than $1.5 billion, or more than four times oversubscribed.
The bank said the final order book was allocated to investors across the Middle East (58%), Asia (22%), Europe (10%) and United Kingdom (10%). The types of investing entities were banks (38%), private banks (28%), fund managers (32%) and other investors (2%).
The bank said the purpose of the issuance is to strengthen and optimize its capital base, to boost the tier 1 and capital ratio and to diversify its capital and investor base.
| Issuer: | National Bank of Fujairah PJSC
|
| Issue: | Perpetual bonds
|
| Amount: | $350 million
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| Maturity: | Perpetual
|
| Bookrunners: | Emirates NBD Capital, First Abu Dhabi Bank, HSBC Bank plc, JPMorgan and Standard Chartered Bank
|
| Coupon: | 5 7/8%
|
| Spread: | Treasuries plus 430.1 bps
|
| Call option: | After five years
|
| Pricing date: | Sept. 24
|
| Distribution: | Regulation S
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