“First Abu Dhabi” successfully issues bonds worth $600 million

Abu Dhabi, January 25 / First Abu Dhabi Bank, one of the largest and safest financial institutions in the world, succeeded in issuing $600 million in bonds with a maturity of 5.25 years, at a rate of 105 basis points above the rate of US Treasury bond yields, with a total return of 4.514%. Pricing was successful on January 19, 2023.
This issuance is the second issue of First Abu Dhabi Bank denominated in US dollars within 10 days, after its success in issuing $500 million RegS Sukuk with a 5-year term, which was successfully priced on January 9, 2023. Thus, First Abu Dhabi Bank becomes the only bank in the region Who enters the capital markets twice and successfully this year.
The $600 million bond issuance is the first bond issuance from a financial institution in the Middle East and North Africa region, achieving the lowest margin pricing (+105 basis points over US Treasury yields) by any bank in the world during 2023 at the bond level. denominated in US dollars with a term of 5 years.
The bond issuance was met with requests of $1.75 billion, three times the subscription size, from elite investors outside the Middle East and North Africa region. The pricing represents a negative new issue premium, an exceptional achievement compared to what global banks (including systemic G-SIBs) pay an average of 10 basis points in new issue premium on their issues.
Rola Al-Qadi, Group Treasurer at First Abu Dhabi Bank, said, “We are pleased to witness the successful launch of our second issuance to the capital markets during January 2023. It highlights the distinction of the issuance and the level of its success in achieving a new negative issuance premium, especially when we take into account the volatility of treasury bond prices.” “This achievement reflects the exceptional position that First Abu Dhabi Bank enjoys as a preferred choice for global investors. Accordingly, we have updated the pricing level of sukuk and bonds for this year, allowing us to pursue a more efficient pricing strategy in all elements of our balance sheet.”