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Abu Dhabi On June 1, First Abu Dhabi Bank succeeded in issuing bonds worth $600 million with a maturity of 5 years, at a rate of +95 basis points above the US Treasury yield, with a total return of 4.774%.
This issuance marks the first green bond issuance by a financial institution in the Middle East and North Africa in 2023.
First Abu Dhabi Bank set new standards by achieving the lowest pricing margin for 5-year US dollar bonds by any financial institution in the Middle East and North Africa region, as the bonds were priced at 5 basis points within the bank’s current structure for US dollar bonds, what It reflects the distinguished position enjoyed by First Abu Dhabi Bank in the market.
The issuance witnessed a strong response from global investors, resulting in an oversubscription of 2.8 times the initial target amount. As a result, the value of the issue was raised to $600 million from the original value of $500 million, which reflects the extent of international investors’ interest and confidence in the quality of First Abu Dhabi Bank’s credit record and sustainable initiatives.
International investors accounted for 85% of the value of the issuance, which is the highest percentage achieved by a financial institution issuing bonds in the Middle East and North Africa region in 2023, while 34% of the issuance went to green investments, which is one of the highest percentages in the market.
Rola Al-Qadi, Group Treasurer at First Abu Dhabi Bank, said: “We are pleased to witness such a large turnout for the issuance of green bonds, which confirms our commitment to continue financing sustainability projects, and highlights investors’ confidence in First Abu Dhabi Bank and its credit strength. This issuance has received wide international participation, not Especially from Asian investors who showed great interest and support for the issuance.. We succeeded in achieving a final pricing margin of less than 100 basis points, in an achievement that confirms the bank’s distinguished position, credit strength and leadership in the field of environmental, social and corporate governance practices in the Middle East and North Africa region. .
This issuance is the third successful public issuance offered by First Abu Dhabi Bank in the bond market denominated in US dollars during the year 2023, which reflects the strength of the credit record of First Abu Dhabi Bank and its distinguished position in the bond market.
