First Abu Dhabi to redeem $750mln perpetual bonds -filing

The bank had faced pressure to call the bonds, with bankers telling Reuters it would be cheaper not to but such a move could cause the bank reputational harm

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

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

First Abu Dhabi Bank / Handout via Zawya

DUBAI- First Abu Dhabi Bank intends to redeem its $750 million Additional Tier 1 (AT1) bonds on their first call date, June 17, it said in a London Stock Exchange filing on Thursday.

The bank had faced pressure to call the bonds, with bankers telling Reuters it would be cheaper not to but such a move could cause the bank reputational harm. 

FAB, the largest bank in the United Arab Emirates, said in a statement that it decided to call the bonds "taking into consideration all factors, including investors' interests, and notwithstanding strong economic rationale".

"FAB is committed to maintaining an efficient capital structure and as such will continue to evaluate its capital position, taking into consideration prevailing market conditions and the evolving regulatory framework," the bank said.

(Reporting by Yousef Saba Editing by David Goodman) ((Yousef.Saba@thomsonreuters.com; +971562166204))

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