GIB Issues $400 Million Bond

MANAMA, 3 October 2005 — Bahrain-based Gulf International Bank, a leading regional merchant bank, announced yesterday the issuing of a 10-year $400-million subordinated floating rate note (FRN). “This is a groundbreaking transaction representing the very first subordinated bond issue by a Middle Eastern financial institution,” said a statement from the bank. “The subordinated FRN has a coupon of 70 basis points over three-month LIBOR (London Inter Bank Offered Rate) and a tenor of 10 years with a call option at the end of 5 years,” it said. The bond, listed on the London Stock Exchange, was lead managed by Barclays Capital and Citigroup, it said.