Bahrain-based United Gulf Bank (UGB) on 29 September issued a $60 million floating rate note. The five-year paper will carry a coupon of 100 basis points (bp) over Libor in the first three years, rising to 125 bp in the final two years. Subscription was chiefly from Kuwaiti institutional investors. Lead managers on the issue were Burgan Bank, Global Investment House and Kipco Asset Management, all of Kuwait.
The bond will be listed on the Bahrain Stock Exchange. UGB is listed on both the Bahraini and Kuwaiti bourses, where the bank's shares rose to 52-week highs on the launch of the bond. First-half net profits at UGB more than doubled to $15.4 million compared with the first six months of 2002 (MEED 1:8:03).