First Abu Dhabi Financial institution (FAB), the UAE’s largest financial institution and one of many world’s largest and strongest monetary establishments, efficiently issued its first USD Tier 2 capital securities on Tuesday, September 26, 2023.
The $1 billion 10.5NC5.5-year Tier 2 bond is the largest-ever Tier 2 issuance by a UAE financial institution and the largest-ever Tier 2 standard bond issuance by a MENA financial institution.
The bond had a ramification of UST+170 foundation factors, leading to a yield of 6.32%. That is the smallest unfold {that a} financial institution worldwide can pay in 2023 for a callable Tier 2 construction.
The providing attracted a well-diversified and high-quality order e-book, with important participation from key world traders.
FAB efficiently allotted 79% of the issuance to traders exterior the Center East. Investor demand reached just below $3 billion, which is the biggest measurement FAB has ever achieved for any of its points up to now.
Regardless of unstable market situations, FAB managed to tighten costs by 30 foundation factors and enhance the deal measurement to $1 billion, surpassing the initially anticipated quantity of $750 million. This was as a result of FAB’s sturdy credit standing and the UAE’s strong macroeconomic fundamentals. Greater than 228 traders participated within the transaction, together with many main world asset managers. FAB achieved the smallest unfold on a Tier 2 difficulty worldwide in 2023.
FAB additionally acted as joint lead supervisor and bookrunner on this Tier 2 bond difficulty.
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