UAE’s NBAD said to postpone green bond

The United Arab Emirates-based National Bank of Abu Dhabi (NBAD) has postponed the region's first-ever green bond following investor concerns over its pricing, Reuters reported, citing unnamed banking sources.

"Investor appetite was low and the pricing was not attractive," a banker familiar with the matter was quoted as saying.

"It is being re-evaluated," he added.

NBAD undertook investor roadshows in August to market the benchmark-sized bond. The funds raised were expected to be used to invest in renewable energy projects.

Benchmark size is usually understood to be worth upwards of $500 million, the news agency reported.

According to another banker quoted in the report, the investors were not clear on how to price the bond given that NBAD is in the midst of a merger with Abu Dhabi-based First Gulf Bank.

“The market has been tested, it (the bond) may be re-launched after the merger,” the second source said.