Gulf International Bank (GIB) has signed a $200 million floating rate note, the first of its kind the Bahrain-based bank has issued in the international capital markets. The issue was arranged by Chase Manhattan International.

The note has a tenor of five years, and will have a coupon of 32.5 basis points a year over the three-month London interbank offered rate (Libor). The issue will be listed on the Luxembourg Stock Exchange.

GIB general manager Abdullah el-Kuwaiz commented in a 6 July statement: 'GIB intentionally chose to tap the international floating rate note market rather than the syndicated loan market in order to attract non-traditional term investors in the international investing community, thus opening up a much broader horizon for financing opportunities.'

Chase Manhattan's regional manager for the Middle East said: 'The success of the issue is a further reflection of the good standing of GIB in the international marketplace.'