Abu Dhabi Commercial Bank ADCB.AD (ADCB) said on Monday it could borrow up to 4.8 billion dirhams ($1.31 billion) by selling bonds to help finance expansion and lending.
Abu Dhabi's second-biggest bank by market value would seek shareholder approval to sell bonds denominated in UAE dirhams, Alok Kakkar, ADCB head of corporate finance, said.
"We are seeking approval at the extraordinary general meeting for a bond issue worth 4.8 billion dirhams," Kakkar told Reuters, without being more specific.
Expectations that the United Arab Emirates and its Gulf Arab neighbours could choose to revalue their dollar-pegged currencies as the U.S. currency tumbles on global markets has led to an increase in borrowing in local currencies.
UAE investors in dollar-denominated bonds fear that if the dirham appreciates, their returns in local currencies would be slashed.
"The proceeds will go towards expansion plans and for funding projects in the UAE and overseas," Akkar said. The shareholder meeting will be held on April 21, the bank said in a statement.
"There is no date clearly identified when the sale would take place," Kakkar said.
ADCB, like its regional rivals, is expanding abroad as competition intensifies at home.
The bank said earlier this month it had won ministerial approval to buy 25 percent of Malaysia's fourth-largest lender, RHB Capital (RHBC.KL: Quote, Profile, Research), to tap growing Asian demand for Islamic bank services.
ADCB Chief Executive Ervin Knox said in January the lender expects profit this year to rise by at least 20 percent on higher lending to consumers and projects. (Reuters)
Abu Dhabi's second-biggest bank by market value would seek shareholder approval to sell bonds denominated in UAE dirhams, Alok Kakkar, ADCB head of corporate finance, said.
"We are seeking approval at the extraordinary general meeting for a bond issue worth 4.8 billion dirhams," Kakkar told Reuters, without being more specific.
Expectations that the United Arab Emirates and its Gulf Arab neighbours could choose to revalue their dollar-pegged currencies as the U.S. currency tumbles on global markets has led to an increase in borrowing in local currencies.
UAE investors in dollar-denominated bonds fear that if the dirham appreciates, their returns in local currencies would be slashed.
"The proceeds will go towards expansion plans and for funding projects in the UAE and overseas," Akkar said. The shareholder meeting will be held on April 21, the bank said in a statement.
"There is no date clearly identified when the sale would take place," Kakkar said.
ADCB, like its regional rivals, is expanding abroad as competition intensifies at home.
The bank said earlier this month it had won ministerial approval to buy 25 percent of Malaysia's fourth-largest lender, RHB Capital (RHBC.KL: Quote, Profile, Research), to tap growing Asian demand for Islamic bank services.
ADCB Chief Executive Ervin Knox said in January the lender expects profit this year to rise by at least 20 percent on higher lending to consumers and projects. (Reuters)
No comments:
Post a Comment