Arab Bank Australia recently announced a successful Government guaranteed bond issue of $200 million for a term of 3 years.  The issue was sold to investors throughout Australia and overseas, and was substantially oversubscribed.  Investors will receive a premium of 47 basis points over 3 month bills for the next 3 years completely guaranteed by the Australian Government.  Nearly all Australian banks have utilised the guarantee throughout the last 15 months, and Arab Bank Australia’s timing was exceptional, the issue being completed the day after the Government announced that the guarantee would be withdrawn for wholesale funding on March 31, 2010.

The funds will be used to further enhance the Bank’s already very strong liquidity position, as well as  to fund future growth of the loan book.  Our commitment to retail deposits remains as strong as ever, and the Bank will continue to offer award winning products at very competitive rates.