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Abu Dhabi Securities Exchange Lists Mandatory Convertible Bonds into Abu Dhabi National Insurance Company Shares
Jun 25, 2016
As part of Abu Dhabi Securities Exchange’s commitment to Abu Dhabi Plan Program 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, mandatory convertible bonds were listed last Thursday into shares by Abu Dhabi National Insurance Company to insure at Abu Dhabi Securities Exchange. The listing was carried out in the presence of Mr. Rashid Al Baloushi, CEO of Abu Dhabi Securities Exchange and Mr. Ahmad Edris, CEO of Abu Dhabi National Insurance Company, in addition to a group of experts, officials from two sides, as well as representatives of the National Bank of Abu Dhabi in its capacity as the director of issuance and the subscription receiving bank.
 
In this regard, CEO of Abu Dhabi Securities Exchange, Mr. 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 organizationally 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.
 
On his part Mr. Ahmad Edrris, CEO of Abu Dhabi National Insurance Company, said: “We are happy to cooperate and partner with Abu Dhabi Securities Exchange, and 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. We believe that the Exchange’s ability to list those financial tools will stimulate the issuance of more local fixed-income instruments and will add a great deal of depth and variety in terms of the options that are available to investors”.
 
Mr. Edris concluded by saying: “I am pleased to point out the support that shareholders of Abu Dhabi National Insurance Company provided to make the issuance process a success. Subscription in more than the targeted amount was made taking into consideration that the call for subscription was confined to the company’s shareholders”.
 
It is worth mentioning that the value of those bonds reaches 390 million Dirhams with a fixed interest rate of 7.5% annually.
 
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