UAE Lender NBAD Has No Capital-Boosting Bond Plans – CEO

National Bank of Abu Dhabi has no plans to issue any capital-boosting bonds, its chief executive said on Monday.

The United Arab Emirates’ largest bank by assets will ask shareholders on March 10 to vote on setting up a $2 billion programme that would allow it to issue bonds with a perpetual tenor and enhance its Tier 1, or core, capital.

However, Alex Thursby told reporters that the bank was satisfied with its current Tier 1 ratio – 15.0 per cent, according to its fourth-quarter financial statement – and merely wanted to establish the programme with upcoming regulatory changes in mind.

“We think it’s good governance to have backstops in play, should we need,” Thursby said on the sidelines of an event hosted by the lender.

“We’re putting those (backstops) in play but, at this stage, we’ve no plans to issue Tier 1.”

Basel III banking regulations, to be phased in globally over coming years, require banks to hold more capital, in more diverse forms.

A number of Gulf-based banks have issued, or are planning to issue, Tier 1 bonds or sukuk, including Dubai Islamic Bank and Doha Bank.