Bank is diversifying funding sources
- Abu Dhabi-based First Gulf Bank has begun a euro-commercial paper programme of up to $3bn
- The papers have received F1 and Prime-1 provisional ratings
Abu Dhabis First Gulf Bank (FGB) is to issue up to $3bn of debt in a euro-commercial papers (ECPs) programme.
The funds will be used for general corporate purposes.
The papers received an expected senior unsecured rating of F1 from Londons Fitch Ratings and a provisional Prime-1 short-term local and foreign currency rating from New York-based Moodys Investors Services.
ECPs are unsecured, short-term debt issued on international markets outside of the financial institutions domestic currency.
FGBs papers will mainly be issued in US dollars, pound sterling and euros to institutional investors, or asset managers, in Europe, Asia and the Middle East.
They will have a one-year tenor. Price guidance has not been released.
The direct, unconditional, unsecured and unsubordinated debt has the same priority as similar debt, according to Moodys.
FGB has launched its new euro-commercial paper programme following our strategy to diversify the sources of funding, says Christopher Wilmot, head of treasury and global markets. The programme will increase FGBs liquidity and will help in managing our short-term liability profile. It will also provide access to a different pool of investors.
FGBs UAE and Singapore branches will manage and issue the ECPs.
The bank also has a $5bn euro medium-term note programme, a $3.5bn sukuk programme and an AU$2bn medium-term note programme.
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