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First Gulf Bank shareholders approve NBAD merger, says CEO

Merger will create one of the largest banks by assets in Middle East and Africa when completed in the first quarter of 2017

Published: Updated:

First Gulf Bank (FGB) secured shareholder’s approval to merge with National Bank of Abu Dhabi (NBAD) at a meeting on Wednesday, FGB’s chief executive Andre Sayegh said.

The pair said in July that their boards had approved the tie-up, which will create one of the largest banks in the Middle
East and Africa with assets of around $175 billion.

NBAD shareholders approved the deal earlier on Wednesday.

NBAD secures $2 bln loan

Meanwhile, NBAD has secured a $2 billion loan, it said in a bourse statement on Wednesday.

Reuters reported last month that the bank aimed to complete the loan, aimed at refinancing existing bilateral debt and
provide new funding, by the second week of December.

On Oct. 27 NBAD said raising the money would help consolidate its banking relationships ahead of its planned
merger with First Gulf Bank.

The merger will create one of the largest banks by assets in the Middle East and Africa when completed in the first quarter of 2017.

NBAD on Wednesday did not elaborate on the details of the loan, but sources told Reuters last month that it would have a lifespan of three years and require participating lenders to each pledge $200 million in return for a fee of 30 basis points.