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First Abu Dhabi Bank (FAB) priced its €750 million three-year long green bond at par, with a reoffer yield of 3.535% and a coupon of 3.5302% at mid-swap +75bps. IPTs on the benchmark senior unsecured Regulation S offering were at mid-swap +100-105bps area.
FAB, the UAE’s largest bank by total assets, saw the orderbook peak in excess of €1.4 billion (excluding JLM interest) at launch, before settling at €1.1 billion.
The green offering has an expected rating of Aa3 by Moody’s and AA- by S&P and Fitch, in line with FAB’s own, which will come under the bank’s $20 billion Euro Medium Term Note Programme.
A listing on the London Stock Exchange Main Market is expected to follow.
The bank has said an amount at least equal to the net proceeds will be used to fund or refinance Eligible Projects in the eligible categories identified as ‘Green’ in FAB’s Sustainable Finance Framework.
The latest offering marks FAB’s return to debt markets since the announcement of the US-Iran peace deal that signalled an end to the regional conflict that started on February 28.
Its most current debt outing was in May, when FAB raised $700 million from a five-year benchmark sukuk, priced at par with a semi-annual coupon of 4.859%.
(Writing by Bindu Rai, editing by Daniel Luiz)
