GIB Decides to Postpone its First Transaction Under its Newly Established EMTN Programme

26 November 2009

Gulf International Bank (“GIB”), one of the leading merchant banks in the Middle East rated A3 / BBB+ / A by Moody’s, Standard and Poor’s and Fitch Ratings, announced its decision to postpone its first transaction under its newly signed US$4 billion Euro Medium Term Note (“EMTN”) programme.

GIB’s management conducted an extensive marketing exercise and met with key fixed income investors in the GCC, Asia and Europe starting on 16th November 2009. Barclays Capital, GIB Financial Services, HSBC and UBS Investment Bank arranged meetings on GIB's behalf.

Following positive feedback from investors, GIB announced a potential US$ denominated 5-year new issue. The order book built quickly with over 60 orders from a diversified investor base to almost double the intended size of the issue. However, following the unexpected announcement from the Dubai Department of Finance in relation to Dubai World’s restructuring and extension of Nakheel’s debt maturity, GIB informed the market of its decision to postpone the transaction.

The decision was made in the best interest of investors participating in the deal. GIB's management would like to thank all the investors who participated in the international road show and in the transaction order book. GIB will continue to monitor markets in the future to access funding opportunities. The EMTN programme will allow GIB to diversify its funding base and further improve the maturity profile of its liabilities. Under the programme, the Bank will be able to issue bonds in a variety of currencies and maturities.