2024-01-11 06:58:32
- $800 million of five-year bonds priced at 85 basis points over US Treasury yields (4.779% total yield)
- The first Sukuk issuance globally in 2024 and the first offering in the region this year
Abu Dhabi: First Abu Dhabi Bank succeeded in issuing sukuks worth US$800 million with a five-year maturity, at a price of 85 basis points above US Treasury revenues, with a total return of 4.779%.
This issuance represents the first sukuk issuance globally in 2024, and the first offering from a financial institution in the region this year. The final pricing margin for the sukuks was set at 85 basis points over US Treasury returns, which is one of First Abu Dhabi Bank’s lowest pricing margins on any public deal denominated in US dollars, which indicates investors’ confidence in the quality of the bank’s credit record.
The issuance witnessed a great response from investors, as the percentage of allocation to Islamic investors reached 76%. First Abu Dhabi Bank also succeeded in allocating 38% of the total issue value to global investors, including international fund managers, development banks and banks. The increase in subscription requests amounted to 1.9 times the initial target amount, which led to the bank’s success in pricing the sukuk at a margin less than the market trading price.
Commenting on this, Rula Al Qadi, Group Treasurer at First Abu Dhabi Bank, said: “We are pleased to witness the success achieved by the Sukuk issuance, which is considered the first for the year 2024 and represents an important step for First Abu Dhabi Bank. It reflects our largest Sukuk issuance in four years and achieving the lowest margin for an offering.” “One year to five years over the past two years, the extent of investors’ confidence in the United Arab Emirates and in the credit record of First Abu Dhabi Bank. On this occasion, we would like to thank investors for their great confidence in us.”
The issuance of the Sukuk reflects the bank’s position as a leading provider of Islamic financial services and a reliable partner for investors around the world.
It is noteworthy that First Abu Dhabi Bank is a lead manager participating in the issuance of these sukuks.
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About First Abu Dhabi Bank
First Abu Dhabi Bank has a strong strategic presence in 20 markets around the world, and is headquartered in Abu Dhabi, representing a gateway for trade and financing activities in the Middle East and North Africa region. The bank’s total assets amount to 1.2 trillion UAE dirhams (US$323 billion) as of the end of September 2023, and it is among the 50 largest banks in the world in terms of market capitalization, and one of the largest banking groups in the world. The bank provides its services to institutional and individual clients within four main business sectors: investment banking, corporate, business and international banking, retail banking, and international private banking. It is noteworthy that the bank is listed on the Abu Dhabi Securities Market, and has a rating of Aa3, AA-, and AA- from Moody’s, Standard & Poor’s, and Fitch, respectively, with a stable outlook. In the field of environmental, social and corporate governance, the bank received an A rating from Morgan Stanley Capital International (MSCI), and First Abu Dhabi Bank was ranked among the top 10% of global banks according to the Refinitiv index, and is considered the best in the field of sustainability in the Middle East and North Africa region. ; It is the strategic partner of the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP28), which is hosted by the United Arab Emirates from November 30 to December 12, 2023.
For more information, please visit www.bankfab.com
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