First Abu Dhabi Bank issues $600M in Green Bonds, achieving lowest pricing margin in the MENA region

First Abu Dhabi Bank, the largest bank in the UAE, and one of the largest safe financial institutions in the world, succeeded in issuing $600 million in 5-year bonds, at a rate of +95 basis points above the US Treasury yield, with a total return of 4.774%.

This issuance represents the first issuance of green bonds from a financial institution in the Middle East and North Africa in 2023, and First Abu Dhabi Bank has set new standards, by achieving the lowest pricing margin for bonds denominated in US dollars for a period of 5 years by any financial institution in the Middle East and North region. Africa, where the bonds were priced at 5 basis points, within the bank’s current structure for bonds denominated in US dollars, which reflects the distinguished position enjoyed by First Abu Dhabi Bank in the market.

The issuance witnessed a great response from global investors, which led to an increase in subscriptions, amounting to 2.8 times the initial target amount, and as a result, the value of the issuance was raised to $600 million from the original value of $500 million, which reflected the extent of global investors’ interest and confidence. With the quality of the bank’s credit record and sustainable initiatives, international investors accounted for 85% of the issuance value, which is the highest percentage achieved by a financial institution issuing bonds in the Middle East and North Africa in 2023, while 34% of the issuance went to green investments, which is one of the highest market ratios.

Rola Al-Qadi, Group Treasurer at the Bank, said: “We are pleased to witness such a high demand for the issuance of green bonds, which confirms our commitment to continue financing sustainability projects, and highlights investors’ confidence in the Bank and its credit strength. This issuance enjoyed wide international participation, especially from Asian investors, who showed great interest and support for the issuance, and we succeeded in achieving a final pricing margin of less than 100 basis points, in an achievement that confirms the bank’s distinguished position in the field of environmental, social and corporate governance practices in the Middle East and North Africa ». . This issuance is the third successful public issuance offered by the bank in the dollar-denominated bond market, during 2023.