PHOTO
First Abu Dhabi Bank PJSC (FAB) saw its latest debt raise draw a tight spread on the back of investor demand, raising $750 million for its benchmark-sized Reg S Tier 2 capital securities, which were priced at par, with a reoffer spread of 140bps over US Treasuries from IPTs in the +170bps area.
The 10.5-year securities, non-callable for 5.5 years, drew a semi-annual fixed coupon rate of 5.701% along with a 5.701% yield.
The orderbook peaked at $1.65 billion (excluding JLM Interest), before finalising at $1.35 billion (excluding JLM).
The securities will mature on December 30, 2036, with a first call date on June 30, 2031 and a reset date on December 30, 2031.
The Abu Dhabi lender is rated Aa3 / AA-/ AA- (all with a stable outlook), while the expected issue rating is A by Fitch.
The securities will be listed on the London Stock Exchange Main Market.
The Tier 2 issuance is FAB’s sixth debt of the year and second in June, with the bank selling a €750 million three-year long green bond at 74bps over mid-swap earlier this month.
Abu Dhabi Commercial Bank, Citi, Emirates NBD Capital, FAB, J.P. Morgan, and Standard Chartered Bank are the mandated joint lead managers and bookrunners on the issuance.
(Writing by Bindu Rai, editing by Seban Scaria)
