Al Khalij Commercial Bank (al khaliji) PQSC recently announced the successful issuance of US$500 million five-year senior unsecured bonds, and its subsidiary AKCB Finance Limited, of US$2.5 billion European Medium Term Note (EMTN) Programme.
The issue was arranged and offered through a syndicate of Joint Lead Managers. Senior representatives from al khaliji held roadshows with Joint Lead Managers and met investors in Singapore, Hong Kong and London.
The transaction saw very strong demand, with an order book of over US$1.6 billion in size (an oversubscription of over three times the offering amount), allowing the bank to tighten the final spread and the coupon below the initial price guidance sought for the transaction. The issue was priced at a spread of 175 basis points over five-year mid-swaps, carrying a fixed coupon of 4.75% per annum, reflecting strong investor appetite. The net proceeds of the issue will be used for general corporate purposes of the bank.
High quality investors from the global community participated in the issue, with investors from MENA, Europe, USA and Asia. The investor base is diversified, including some of the world’s leading fixed income investors.
al khaliji Group CEO Fahad Al Khalifa said that the US$500 million transaction was the second benchmark issued by the bank after its debut issuance in 2013. al khaliji established its $ 2.5 billion EMTN programme in 2013. Both the bank and the issuer are rated A3 by Moody’s and A by Fitch. The bonds will be listed on the Irish Stock Exchange and are expected to be rated A3 by Moody’s and A by Fitch.
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