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First Abu Dhabi Bank (FAB), the UAE’s largest bank by assets, has raised £450 million ($613 million) from its third issuance of the year, comprising a 5.5-year senior unsecured benchmark bond that saw its price tightened to UKT +75bps from IPTs at Mid-Gilts +90bps area.
Investor demand saw the orderbook swell over £825 million (including £75 million JLM) at launch, before settling in excess of £775 million.
The bond has generated a 4.6965% annual coupon (short first), with a 4.702% annual yield and a reoffer price at par.
The issuance is rated Aa3 / AA-/ AA- by Moody’s/S&P/Fitch, in line with the Abu Dhabi lender’s own rating.
The issuance will come under FAB’s $20 billion Euro Medium Term Note Programme as supplemented.
Barclays, Deutsche Bank, First Abu Dhabi Bank, Standard Chartered Bank and TD Securities are the joint lead managers and bookrunners on the bond. Standard Chartered is the Billing and Delivery agent.
The bond will list on the London Stock Exchange’s Main Market.
FAB’s previous two issuances in January raised $750 million each, including a five-year Formosa bond at SOFR +75bps, which was preceded by a five-year benchmark at T+60bps.
(Writing by Bindu Rai, editing by Seban Scaria)
