Gulf International Bank B.S.C. (the Company) announced today that its current intention is not to exercise the redemption option initially available on the interest payment date falling in September 2010 (the Call Date) in relation to its U.S.$400,000,000 Subordinated Step-Up Floating Rate Notes due 2015, ISIN XS0230799925 (the Notes) due to prevailing adverse market conditions and economic conditions.
The Notes are still redeemable on any interest payment date after the Call Date. The Company intends to review its decision not to call the Notes from time to time in light of then prevailing market conditions and the financial position of the Company. Any notice to call would be given not more than 60 nor less than 30 day's prior to the due date fixed for redemption.
The Company values its relationship with the holders of the Notes as important stakeholders in its business and it will continue to monitor market conditions until the Call Date. In the meantime, the Company intends to launch a cash tender offer shortly and invite holders of the Notes to offer to sell for cash to the Company a limited amount of their Notes in a modified dutch auction, subject to the terms and conditions of the tender memorandum, to be issued in connection with such cash tender offer.
This press release contains forward-looking statements. Forward-looking statements are statements that are not historical facts and include statements about the beliefs, expectations and assumptions underlying them. These statements are based on plans, estimates and projections as they are currently available to the management of Gulf International Bank B.S.C. Forward-looking statements relate only to the date they are made and Gulf International Bank B.S.C. is not obliged to update publicly any of these statements in light of new information or future events.
By their very nature, forward-looking statements involve risks and uncertainties. A number of important factors could therefore cause actual results to differ materially from those contained in any forward-looking statement. Such factors include the current prevailing global market conditions.
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