First Abu Dhabi Bank (FAB) has issued an $800 million five-year Sukuk with the US Treasury +85 basis points, resulting in a total return of 4.779%.
This issuance marks the first Sukuk issued globally in 2024 and constitutes the region’s first offering for the year. The final Sukuk spread was set at 85 basis points over US Treasuries, one of FAB’s lowest spreads in any public dollar transaction, demonstrating investor confidence in the bank’s solid solvency.
To achieve diversity goals, the allocation foresees 76% going to dedicated Islamic investors and 38% to international counterparts. The 1.9x oversubscribed order book represented high-quality investors, including international and supranational fund managers and banks.
Rula AlQadi, treasurer of the FAB group, saying,
“We are delighted with this successful Sukuk issuance, the first of 2024 and a milestone for FAB. Securing our largest Sukuk in four years and the lowest five-year public issuance spread in two years demonstrates investor confidence in the “United Arab Emirates and FAB’s creditworthiness. We deeply appreciate their continued trust.”
This Sukuk issuance further strengthens the bank’s position as a leading Islamic financial provider and trusted partner for investors around the world.
fabulous It also acted as joint lead manager on this Sukuk issue.
News source: Emirates News Agency