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National Bank of Abu Dhabi 
to Sell 5-Year Bonds

DUBAI — National Bank of Abu Dhabi PJSC, the United Arab Emirates second-biggest lender by assets, plans to sell five-year bonds in dollars, according to a banker involved in the deal.

The notes may be priced to yield about 190 to 200 basis points more than the benchmark mid-swap rate, the banker said.

NBAD’s bond sale will be the first from a UAE-based lender this year, following the real-estate slump that increased the amount of bad debt in the banking system.

Emirates NBD PJSC, the nation’s largest bank by assets, and National Bank of Abu Dhabi PJSC, will face higher non-performing loans this year and a “more challenging” funding environment that will hurt growth, Goldman Sachs Group Inc. said in a 
report August 24.

Emirates NBD may raise more than $500 million this year by selling medium-term notes after a government guarantee for such instruments is approved, the bank said Sept. 1.

The UAE’s Federal National Council, a partially elected advisory body to the president, approved a law on June 30 that will temporarily allow the government to guarantee bonds sold by local banks. The law now must be approved by the president.

NBAD’s 10-year convertible floating-rate note due 2016 was paying 79.1 cents on a dollar, yielding 4.1 per cent, at 2:02 p.m. in Dubai, according to Nomura International prices provided
 to Bloomberg.

Barclays Capital, BNP Paribas SA and Royal Bank of Scotland Group Plc are managing the offering with National Bank of Abu Dhabi.—