Friday, October 6, 2023 – 6:42 pm
Abu Dhabi, 6 October / WAM / First Abu Dhabi Bank announced the launch of the first issue of second-tier bonds denominated in US dollars, amounting to one billion dollars for a period of 10 and a half years, non-callable for a period of 5 and a half years, in the largest issuance of second-tier bonds by a financial institution. UAE, and the largest conventional Tier 2 bond of a financial institution in the Middle East and North Africa region.
The price of the bonds was set at 170 basis points above US Treasury bonds, achieving returns of 6.32%, the lowest pricing margin achieved by a banking institution in the world for second-tier callable bonds during the year 2023.
The issuance witnessed a great response from global investors, and attracted diverse and high-quality purchase orders.
First Abu Dhabi Bank also succeeded in allocating 79% of the total value of the issue to investors from outside the Middle East, and the value of subscription applications reached a record level of just under 3 billion US dollars, in the largest subscription size achieved by First Abu Dhabi Bank for any of its issues to date.
Despite the fluctuations witnessed in the financial markets, First Abu Dhabi Bank succeeded in reducing the bond price by 30 basis points compared to the initial indicative price, and also succeeded in increasing the value of the issuance to one billion US dollars, exceeding the expected initial value of 750 million dollars thanks to the strong credit rating. Which the bank enjoys and the strong macroeconomic foundations of the United Arab Emirates.
The issuance witnessed the participation of more than 228 investors, including an elite group of prestigious asset managers worldwide.
The bank also succeeded in achieving the lowest pricing ever for Tier 2 bonds globally in 2023.
First Abu Dhabi Bank acted as joint bookrunner and lead manager for this Tier 2 bond issuance.
Rami Samih/Ibrahim Nuseirat
2023-10-06 14:44:00
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