Abu Dhabi Commercial Bank (ADCB.AD) has mandated banks for a bond issue in Swiss francs, due to price on Tuesday, the third Gulf lender to test the Swiss market to diversify and access cheaper funding in recent months.
ADCB picked RBS (RBS.L) and UBS (UBSN.VX) for the 150 million Swiss franc ($157.3 million) bond which matures in 2015 with an expected coupon of 3 percent, reported IFR Markets, a unit of Thomson Reuters.
"Swiss franc bonds allow Gulf issuers to tap cheaper funding due to an attractive swap rate with U.S. dollars, and the most attractive maturity is five-year as that is where you are getting the biggest pick-up", said Thomas Christie, fixed income sales trader at Wallich & Matthes in Dubai.
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