ADCB's bond may be priced at 260 bps over 5-year Treasury

Deutsche Bank, Standard Chartered Bank and Bank of America are said to be lead-managing ADCB's bond issue under global medium term note (GMTN) programme, according to banking sources in Abu Dhabi.

According to institutional representatives, who were present in the roadshow on September 28 in Abu Dhabi, the pricing would be in the vicinity of 260 basis points (bps) above five-year US Treasury, which could work out a pricing of about five per cent.

Sources also told Emirates Business that there will be one more roadshow in the US and that will draw to close such exercises before a price discovery is possible. "Since ADCB's credit default swap (CDS) is about 40-50 bps wider than that of National Bank of Abu Dhabi (NBAD), the pricing of ADCB's GMTN should logically be around a margin of 260 bps," said the financial controller of a foreign bank.