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First Abu Dhabi Bank PJSC (FAB) is set to issue benchmark-sized Reg S Tier 2 capital securities denominated in US dollars, with IPTs in the area of 170 bps over US Treasuries.
Abu Dhabi Commercial Bank, Citi, Emirates NBD Capital, FAB, J.P. Morgan, and Standard Chartered Bank have been mandated as joint lead managers and bookrunners.
The 10.5-year securities non-callable for 5.5 years, will mature on December 30, 2036, with a first call date on June 30, 2031 and a reset date on December 30, 2031.
Pricing is scheduled for June 22, 2026 and settlement on June 30, 2026.
The issuer is rated Aa3 by Moody’s and AA- by both S&P and Fitch, all with a stable outlook, while the expected issue rating is A by Fitch.
Interest will be paid semi-annually in arrears on June 30 and December 30 each year, starting December 30, 2026. The notes will carry a fixed rate until the reset date, after which the coupon will reset at the prevailing 5-year US Treasury rate plus a margin.
The securities will be listed on the London Stock Exchange and cleared through Euroclear and Clearstream.
Last week, FAB sold €750 million three-year long green bond at 74bps over mid-swap, narrowing from 100bp–105bp as books closed over €1.1 billion.
(Writing by Brinda Darasha; editing by Seban Scaria)
