UBK to offer $100 million floating rate notes
The UK-based United Bank of Kuwait (UBK) officially announced last week its offering of $100 million international three-year notes, which will carry a floating rate.
Paribas, London, is the sole underwriter of the unsecured notes — though Deutsche Bank and Dresdner Bank will also execute the management of the notes. "The note achieved a very good geographical distribution among the co-lead managers and syndicate members, particularly in Europe," reported the Bahrain Tribune.
With the use of the new notes, UBK intends to diversify and extend its liabilities structure, as well as boost the bank's liquidity level.
UBK merged with Ahli United Bank (AUB), the Bahrain-based offshore banking unit, on July 30. Additionally, AUB exchanged its shares for the entire equity capital of Al Ahli Commercial Bank, considered as one of Bahrain’s most profitable and successful banking institution.
Fitch IBCA, the London based rating agency, recently confirmed its December 1999 grading of UBK's long-term investment rating of BBB+. Furthermore, it stated that the effects of the recent merger, in addition to the bank's restructuring program of its cost management, risk control and revenue generation were both demonstrating positive results. — (Albawaba-MEBG)
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