United Gulf Bank to complete investor roadshow

08 February 2010

Bond issue will need to be priced at 11 per cent

Bahrain’s United Gulf Bank is due to complete a roadshow for a potential bond issue by 11 February. The final meeting with investors is set to take place in the UAE.

The roadshow started on 3 February and includes meetings with potential investors in Bahrain, Switzerland, London, Abu Dhabi and Dubai.

Bankers who attended the meetings say the company will have to pay a return of about 11 per cent to attract enough interest from investors.

One banker who attended the roadshow says that United Gulf Bank told those at the meeting that it has no exposure to Dubai World and only limited exposure to Saudi conglomerates Saad Group and Ahmed Hamad al-Gosaibi & Brothers. The latter are currently in default on more than $20bn of debt in total.

The UK’s Standard Chartered and France’s Calyon have been appointed to manage the bond issue (MEED 3:2:10).

Saudi real estate company Dar al-Arkan is also currently working on a $500m five-year Islamic bond issue, that is expected to pay a fixed rate of return of between 10.5 per cent and 11 per cent.

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