Monday 13 April 2009

NBQ refuses to cancel Dh2.36bn deal with Global Investment House

National Bank of Umm Al Qaiwan (NBQ) has refused to return $250 million (Dh918m) to Kuwait-based investment bank Global Investment House and is seeking instead to complete a debt conversion for which the cash was received as advance payment.

According to a July deal, NBQ would issue convertible bonds to Global for Dh2.359 billion. The deal set a premium of Dh6.15 per share over and above the face value of Dh1. NBQ's shares currently trade at about Dh4 on the Abu Dhabi Securities Exchange.

Global would have the option to convert the instrument into 330 million new shares of NBQ, which would expand the bank's paid-in share capital by 25 per cent and give Global a 20 per cent shareholding in NBQ.

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