Gulf International Bank (GIB), rated A (Fitch) / A3 (Moody’s) / BBB+ (S&P), announced Wednesday the successful completion of its senior unsecured $500 million 5-year debut issue under its $4 billion Euro Medium Term Note Program. The notes were issued at a spread of $5-year mid-swap plus 165 basis points with a coupon rate of 2.375 percent.
The highly successful Reg S transaction achieved one of the lowest coupons for a $5-year senior unsecured transaction by a bank in the MENA region, clearly reflecting investors’ high confidence in GIB’s financial strength and credit story.
Initial price guidance was communicated at 8:00 a.m. London time Tuesday (Dec. 4) to the market at a range of mid-swap +165-175 basis points, which resulted in strong momentum allowing GIB to execute intra-day and to price at the low end of the price guidance. The order book was 3.5 times oversubscribed and comprised around 90 investors.
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