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Abu Dhabi Raises $11.6b from Int’l Debt Capital Markets

Abu Dhabi — Abu Dhabi based issuers have raised $11.6 billion from the public international debt capital markets in 2009 to date according Jeremy Parrish, Chief Executive of Standard Chartered Bank’s Abu Dhabi and Al Ain division.

Issuers represent a diverse range of businesses and industries including the Sovereign, SOEs, Tourism and Leisure, Banking, Real Estate and Power & Energy Sector such as Mubadala, Aldar, TDIC, and TAQA.

Standard Chartered Bank has played an active role as arranger and bookrunner for a number of Abu Dhabi based high profile issuers in the international bond and loan markets.

“Our share is 30 per cent as book runner. The distribution for Standard Chartered Bank arranged five years issues is 25 per cent in the Middle East and 14 per cent in Asia (Europe 35 per cent and US 26 per cent)” Jeremy Parrish said. Even by conservative estimates it can be said projects worth $100 billion are being implemented or have been announced in Abu Dhabi, he said. The local banks may not be able to raise this much fund, considering that they don’t have adequate long-term deposits. Even by the assessment of the UAE central bank the deposit to loan ratio of the local banks was in excess of 105 per cent, and this meant they have lent more than their deposits.

Abu Dhabi will be able to fund these projects from its own resources itself considering its huge reserves. But it will be prudent to diversify its resource-base to fund these projects, and more institutions are likely to tap the international market in the coming days. Interestingly there were no significant efforts from the emirate to tap the international market last year, he said.

Jeremy Parrish disclosed these figures at the Press conference convened by Abu Dhabi Department of Economic Development (ADDED) to announce the organisation of the Second Abu Dhabi Investment Forum (ADIF) in London on October 19. 


ramavarman@khaleejtimes.ae