DUBAI Jan 4 Bahrain-based Gulf International
Bank (GIB) has chosen six banks to arrange an
upcoming U.S. dollar-denominated bond sale, sources familiar
with the situation told Reuters on Wednesday.
The bond will be a benchmark transaction, which
traditionally means upwards of $500 million, and could be
launched as early as the end of January, said the sources.
Citigroup, HSBC, JP Morgan, Mizuho, National Bank of Abu
Dhabi and Standard Chartered are the lead banks, said the
sources, with one of them adding that JP Morgan and National
Bank of Abu Dhabi are coordinating the transaction.
GIB was not immediately available for comment.
GIB is likely to be one of the first banks in the Gulf
Cooperation Council to issue international bonds in 2017,
leading the way for a number of regional lenders tapping debt
markets to offset the impact of lower oil prices on their
liquidity and to comply with international regulatory standards
on capital adequacy ratios.
The Bahraini lender issued a request for proposals for the
bond in November last year, as reported by Reuters.
GIB has a $500 million outstanding five-year Eurobond
maturing in December 2017. Barclays, GIB Capital,
JP Morgan, National Bank of Abu Dhabi, Societe Generale and
Standard Chartered were the lead arrangers of the 2012 bond
GIB is 97.22 percent-owned by Saudi Arabia's Public
Investment Fund. It is rated Baa1 by Moody's and A- by Fitch.
(Editing by Elaine Hardcastle)