UAE News Today : Business

FAB issues largest Tier 2 dollar bond from a UAE bank


First Abu Dhabi Bank (FAB), the largest bank in the UAE and one of the largest and strongest financial institutions in the world, successfully issued its first USD Tier 2 capital securities on Tuesday, September 26, 2023.

The $1 billion 10.5 NC 5.5-year Tier 2 bond is the largest Tier 2 bond issuance ever by a UAE bank and the largest conventional Tier 2 bond issuance in the UAE. a MENA bank.

The bond was priced at a spread of UST+170 basis points, resulting in a yield of 6.32%. This is the tightest spread paid by any bank globally in a Level 2 redeemable structure in 2023.

The offering attracted a high-quality, well-diversified order book, with significant participation from key global investors.

fabulous successfully allocated 79% of the issue to investors outside the Middle East. Investor demand reached just under $3 billion, the largest book volume FAB has ever achieved for any of its issues to date.

Despite volatile market conditions, fabulous managed to adjust prices by 30 basis points and increase the size of the deal to $1 billion, exceeding the initially planned amount of $750 million. This was due to FAB’s strong credit position and the UAE’s strong macroeconomic fundamentals. More than 228 investors participated in the transaction, including numerous prominent global asset managers. FAB achieved the tightest spread on a Tier 2 issuance globally in 2023.

fabulous It also acted as joint lead manager and bookrunner on this Tier 2 bond issue.

News source: Emirates News Agency


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