MANAMA: Ahli United Bank B.S.C. (AUB) has priced its maiden issue of USD Perpetual Additional Tier 1 securities at a competitive coupon of 6.875% p.a. It will issue a total of US$400 million of these securities against the originally planned size of US$300 million, on the back of strong investor demand which exceeded US$650 million.
The announcement followed successful fixed income investor meetings in Asia, the Middle East and Europe.
The perpetual Additional Tier 1 securities are compliant with the Basel III norms as implemented by the Central Bank of Bahrain. These securities represent a new form of capital for AUB, which will further diversify its capital base and reduce its effective capital costs. AUB intends to deploy this new capital towards both organic and inorganic growth opportunities.
“The strong demand generated for AUB’s Additional Tier 1 securities post the successful fixed income investor meetings in Asia, the Middle East and Europe has not only resulted in AUB increasing its planned issue size from US$300 million to US$400 million, but also in achieving a very attractive coupon for the securities of 6.875% p.a. This is a clear indication of the confidence of global investors in AUB’s diversified regional business model, its robust financial performance and the overall strength of its credit story. The successful closure of this issue will help AUB to sustain its growth momentum and optimize its capital resources,” said Hamad Al-Humaidhi, Chairman, AUB.