UAE’S NBAD Partly Repays Post-Dubai World Government Support
National Bank of Abu Dhabi , the largest lender by market value in the United Arab Emirates, has repaid 1 billion dirhams ($272.3 million) of subordinated notes to the country's Ministry of Finance, it said on Thursday.
August 19, 2012 8:08 by Reuters
The sum was part of 5.6 billion dirhams provided by the government in January 2010 as part of a wider move to support the UAE banking system in the aftermath of Dubai World’s 2009 $25 billion debt restructuring standstill request.
Under the plan, the UAE authorities provided additional Tier 2 capital, in the form of subordinated notes, to every bank in the country to strengthen their capital bases and head off any solvency concerns after the Dubai World news.
The 5.6 billion dirhams of subordinated debt consisted of a seven-year bond paying a coupon of 4.5 percent. After the notes were absorbed into the bank’s capital structure, it took its capital adequacy ratio to 23.5 percent. ($1 = 3.6730 UAE dirhams) (Reporting by David French; Editing by Amran Abocar)