First Gulf Bank
From Taighde
First Gulf Bank (FGB), is a publicly owned bank headquartered in Abu Dhabi, United Arab Emirates and owned by several sons of Abu Dhabi's ruling family. The Emirates Investment Authority made its first investment in the Bank, buying up convertible bonds.
Hazza bin Zayed bin Sultan Al Nahyan is the Chairman of the bank. Tahnoon bin Zayed Al Nahyan is the Vice-Chairman
Bond Sale
On July 21, 2008, after approval by the First Gulf Bank's Board of Directors, FGB issued mandatory convertible bonds worth AED3.6 billion to UAE institutional strategic partners. This was the Emirates Investment Authority first investment. At the time, the chairman of the EIA, Mansour bin Zayed Al Nahyan was also the Chairman of the FGB. Abdul Hamid Saeed, Board Member of the EIA, is Managing Director of the FBG.
Maturity date for the bonds is July 2011, and the interest rate to be paid to the bond holders before conversion into shares is 3 months EIBOR + 1%, while the conversion rate has been calculated at AED28.80.
The list of UAE strategic partners whose FGB convertible bonds will be issued to, includes: Mubadala Development Company, Emirates Investment Authority, Abu Dhabi Retirement Pensions and Benefits Fund, Dubai Ventures a member of Dubai Group, Tasameem-a subsidiary of Abu Dhabi Investment Authority, Seven Emirates for Investments and International Trading, Capital Investment, Sanabel, Al Ain International Group, Al Nahdha Investments, and Al Tadamoun Investments.
Bonds could be converted into shares after three months from date of issue date at the option of FGB.
The bonds will be used by FGB for its corporate and retail organic growth, as well as to fund the organic growth of its associated companies.
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