GIB raises SAR2 billion through a successful oversubscribed bond issue
On Sunday, 11th May, 2014, Gulf International Bank (GIB), rated A (Fitch) / A3 (Moody's) / BBB+ (S&P), successfully completed its senior unsecured SAR2 billion 5-year Floating Rate Notes issuance. The notes were issued at a spread of 72.5 basis points above three-month SAIBOR.
This successful transaction achieved a highly optimal spread for GIB, which clearly reflects investors' high confidence in GIB's financial strength and credit story.
Initial price guidance was communicated on Sunday, 27th April, 2014' which resulted in strong momentum allowing GIB to execute a tight spread of 72.5 basis points above three-month SAIBOR. The order book was more than 1.7 times oversubscribed, reaching more than SAR3.4 billion from investors, including banks, non-bank financial institutions, corporates, government agencies and investment companies within the Kingdom of Saudi Arabia.
Dr. Yahya Alyahya, GIB's Chief Executive Officer, commented: "We are very pleased with the successful closing of this bond issue at a very attractive pricing. The demand from a large number of highly respected entities reflects the market's confidence in GIB's strong financial position."
Dr. Alyahya added, "This bond issue confirms GIB's commitment to diversify its funding sources and utilise innovative funding structures to achieve the lowest possible cost of funding for the Bank."
The joint lead managers and book runners for the offering were GIB Capital L.L.C., NCB Capital Company, Samba Capital and Investment Management Company and Saudi Fransi Capital.