Abu Dhabi Commercial Bank delays Malaysian bond

21 August 2008

Abu Dhabi Commercial Bank (ADCB) has delayed issuing a bond priced in Malaysian ringgits, due to poor market conditions.

The bank is expected to wait until after Bank Negara Malaysia (central bank) has held a meeting to set interest rates on 25 August, and ADCB has evaluated the market trends following the meeting.

The bank had been expected to look at raising a total of RM300 ($90m) from the Malaysian market, in two tranches with a tenor of three and five years respectively.

The deal had initially been expected to be as large as RM1bn, but was scaled down due to the poor market conditions, according to bankers close to the deal.

ADCB recently spent $1.2bn acquiring a 25 per cent stake in Malaysia’s RHB Capital.

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