First Abu Dhabi Bank prices euro-denominated bonds at 0.142%

The deal attracted a total orderbook of EUR 1.7 billion from over 110 investors

  
Image for illustrative purposes. First Abu Dhabi Bank head office situated at Khalifa Business Park Abu Dhabi.

Image for illustrative purposes. First Abu Dhabi Bank head office situated at Khalifa Business Park Abu Dhabi.

First Abu Dhabi Bank/ Handout via Thomson Reuters Zawya

First Abu Dhabi Bank (FAB), the UAE's largest bank, has priced a EUR 750 million ($909 million) five-year bond at mid-swaps +55bps with an all-in yield of 0.142 percent.

This is FAB’s first Euro denominated benchmark issuance and the lowest-ever yield on any public bond issuance from MENA as well as the largest-ever Euro issuance by a bank from the region, the lender said in a statement Wednesday.

The deal has attracted a total orderbook of EUR 1.7 billion from over 110 investors, including large European central banks, asset managers and Sovereigns, Supranational and Agencies (SSAs) representing a 2.3x over-subscription.

This enabled FAB to tighten pricing by 20bps from initial price thoughts and price at EUR 55bps over mid-swaps, it said.

This was FAB’s fifth public issuance in 2021--all in different currencies, USD, CNH, CHF, GBP and now EUR.

Rula Al Qadi, Managing Director & Head of Group Funding at FAB commented: “Today, with our hugely successful debut deal in the Euro market we achieved another funding objective of diversifying and accessing a new pool of investors to further deepen our funding base.”

(Writing by Brinda Darasha; editing by Daniel Luiz)

brinda.darasha@refinitiv.com 

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