Thursday, Aug 16, 2012

DUBAI (Zawya Dow Jones)--National Bank of Abu Dhabi, the second-largest bank in the United Arab Emirates by assets, on Thursday said it repaid 1 billion U.A.E. dirhams ($272 million) of Ministry of Finance subordinated notes.

Before the repayment, the bank had a total of AED5.6 billion of Ministry of Finance notes, according to a statement on the Abu Dhabi bourse website.

The notes originated as part of AED70 billion of deposits the Ministry of Finance made in the local banking system in 2008 as a response to the financial crisis. With the ministry's consent, NBAD converted its AED5.6 billion of deposits into notes with a 4.5% interest rate in 2010 and categorized them as Tier 2 capital.

NBAD shares closed trading Thursday 0.6% higher at AED8.80.

-By Asa Fitch, Dow Jones Newswires, +971 4 446-1685, asa.fitch@dowjones.com; Twitter: @ZDJnews

Copyright (c) 2012 Dow Jones & Co.

(END) Dow Jones Newswires

16-08-12 1131GMT