ADX lists Adnic's convertible bonds

27/06/2016 01:59 AST

Abu Dhabi Securities Exchange has listed the mandatory convertible bonds issued by Abu Dhabi National Insurance Company or Adnic.

The insurance company has raised Dh390 million capital, which was over-subscribed. The bonds will be convertible in to shares after their tenor. They carry a fixed interest rate of 7.5 per cent annually.

The new listing is part of Abu Dhabi Securities Exchange's commitment to Abu Dhabi Plan toward achieving a financial system that supports development in the Emirate, and as part of its contribution to the development of the financial services sector.

The listing was carried out in the presence of Rashid Al Baloushi, CEO of Abu Dhabi Securities Exchange and Ahmad Edris, CEO of Abu Dhabi National Insurance Company, in addition to a group of experts, officials, as well as representatives of the National Bank of Abu Dhabi in its capacity as the issuer and the subscription receiving bank.

In this regard, CEO of Abu Dhabi Securities Exchange, Rashid Al Baloushi, stated that the issuance of those bonds and listing them in Abu Dhabi Securities Exchange comes as part of the Exchange's efforts to look for the best ways possible that would help reinforce the investment attractiveness of the Emirate of Abu Dhabi, and the UAE in general.

This can be achieved by providing a wide variety of investment tools and benefiting from the Exchange's advanced technical infrastructure, as well as its implementation of effective procedures that enables it to support the success of the bonds listing processes, whether they are valued based on UAE Dirham or foreign currencies.

He added: "We are certain that the fixed-income local bonds issuance processes and the Islamic instruments will help in providing more financing channels for infrastructure projects, as well as play a role in increasing capital flows and providing a local yield curve for the bonds. Moreover, he said that this step shall reinforce the financial and investment tools in capital markets, and shall increase the possibility of wider investment options for the investors in local financial markets.

Al Balushi also stated that: "Abu Dhabi Securities Exchange is both technically and organisationally ready to list and trade bonds due to its reliance on an advanced clearing and settlement system."

Moreover, the new legislations that the Securities and Commodities Authority has approved are considered a significant step in this regard which would encourage companies and institutions that are seeking to increase their capital to take advantage of this new investment method, he said. Ahmad Edrris, chief executive officer of Abu Dhabi National Insurance Company, said: "We look forward to expand our partnership with them pursuant to the strategy which aims to offer unique services for the customers, investors and partners".

Moreover, he said: "The importance of our cooperation with Abu Dhabi Securities Exchange in this step stems out from the fact that it shall help provide investment alternatives in the Exchange and reinforce the attractiveness of its investment environment.

Khaleej Times