- Five-year 350 million Australian dollar-denominated bond priced at 110 basis points over BBSW
- Issuances in line with FAB’s strategy to further diversify its investor base and funding sources
- Follows five-year USD 500 million RegS Sukuk and a thirty year callable USD 485 million Formosa bond both of which were issued in January 2020
- FAB acted as joint lead manager on the Sterling, Kangaroo and Sukuk issuances
Abu Dhabi: First Abu Dhabi Bank (FAB), the UAE’s largest bank, the highest rated bank across the Middle East and one of the world’s largest and safest financial institutions, has issued bonds worth over AED 3 billion via two separate public issuances in three days, marking its first ever Sterling bond and first Kangaroo bond since 2014.
FAB issued its inaugural three-year GBP 450 million (AED2.15 billion equivalent) fixed rate bond, under its USD 15 billion Euro Medium Term Note (EMTN) Programme. This marks the first and largest ever Financial Institution GBP issuance from the region. The book was 2.8 times oversubscribed with strong participation from high quality UK investors. The bond will be listed on the London Stock Exchange.
The bank also raised AUD350 million (AED 860 million equivalent) through a Kangaroo issuance. The five-year floating-rate notes were priced at 110 basis points over the three-month bank bill swap rate (BBSW) and issued under its AUD 2 billion Debt Issuance Programme. This marks FAB’s return to the Australian dollar market for the first time since 2014. The bond will be listed on the Australian Stock Exchange.
André Sayegh, Deputy Group CEO and Group Head of Corporate & Investment Banking, First Abu Dhabi Bank (FAB), said: “FAB’s ability to tap both the UK and Australian markets in the same week underlines the success of FAB’s funding strategy, with our first Sterling bond representing another significant milestone for the bank. Both transactions are consistent with our strategy to diversify our investor base whilst raising cost-effective liquidity and funding. The strong levels of demand demonstrate the trust and confidence that global investors place in FAB, which is underpinned by our solid fundamentals, diversified funding base, robust liquidity, and market-leading credit profile and ratings.”
January saw FAB issue the region’s first dollar-denominated Sukuk of 2020, a USD 500 million RegS Sukuk under its USD 3.5 billion Trust Certificate Issuance Programme. The five-year Sukuk was priced at 90 basis points over mid-swaps and is listed on the London Stock Exchange. This is the lowest profit rate and credit spread achieved on any of FAB’s previously issued Sukuk, demonstrating the bank’s well-established investor base and recognition in the market. The orderbook topped USD 1 billion with 80% allocated to Islamic investors which is materially higher than the average seen in regional Sukuk deals.
FAB is rated Aa3/AA-/AA- by Moody’s, S&P and Fitch, respectively, the strongest combined credit ratings of any other bank in the MENA region.
-Ends-
About First Abu Dhabi Bank (FAB)
FAB, the UAE’s largest bank and one of the world’s largest and safest institutions, offers an extensive range of tailor-made solutions, and products and services, to provide a customised experience. Through its strategic offerings, it looks to meet the banking needs of customers across the world via its market-leading Corporate and Investment Banking and Personal Banking franchises.
Headquartered in Abu Dhabi in Khalifa Business Park, the bank’s international network spans five continents, providing the global relationships, expertise and financial strength to support local, regional and international businesses seeking to do business at home and abroad.
In line with its commitment to put customers first, to Grow Stronger, FAB will continually invest in people and technology to create the most customer-friendly banking experience, and will support the growth ambitions of its stakeholders across countries in which the bank operates.
To empower its customers and clients to Grow Stronger, FAB initiated a powerful movement, which goes beyond banking. The Grow Stronger movement represents the bank’s promise to support its stakeholders’ goals and growth ambitions, providing ideas, tools and expertise to help them become stronger, today and in the future.
With total assets of AED 788 Billion (USD 214 Billion) as of September-end 2019, FAB is rated Aa3/AA-/AA- by Moody’s, S&P and Fitch, respectively, the strongest combined ratings of any bank in the MENA region. The Bank has been ranked by Global Finance as the safest bank in the UAE and the Middle East. The Banker Magazine, has named FAB as the second largest bank in the Middle East by Tier 1 Capital in its Top 1000 World Banks 2019 ranking. FAB is well positioned to unlock the full potential of a unified bank with a strong focus on customer experience, digitisation and continued growth, as we enter the next phase of our journey to grow stronger.
For further information, visit: www.bankfab.com
For media inquiries, please contact:
Mira Assaf
Weber Shandwick MENA
Phone: + 971 50 3123518
Fax: + 971 2 449 4833
Email: Massaf@webershandwick.com
Talal Natafji
Weber Shandwick MENA
Phone: + 971 50 9010077
Fax: + 971 2 449 4833
Email: Tnatafji@webershandwick.com
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