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17 February 2020

FAB issues over AED 3 billion bonds within three days

The bank issued the region’s first dollar-denominated Sukuk for 2020 in January, the order book topped $1 billion with 80 per cent allocated to Islamic investors

The bank’s new sterling bond will be the biggest syndicated deal in the currency out of the Middle East/iStock

by Kudakwashe Muzoriwa

UAE’s First Abu Dhabi Bank (FAB) has issued over AED 3 billion bonds via two separate public issuances in three days.

André Sayegh, FAB’s Deputy Group CEO and Group Head of Corporate & Investment Banking, said, “FAB’s ability to tap both the UK and Australian markets in the same week underlines the success of FAB’s funding strategy, with our first sterling bond representing another significant milestone for the bank.”

FAB issued its debut three-year GBP 450 million (AED2.15 billion) fixed-rate bond, under its $15 billion-euro medium-term note (EMTN) Programme, marking the first and largest ever financial institution GBP issuance from the region.

The lender stated that the book was 2.8 times oversubscribed with strong participation from high-quality UK investors and the bond will be listed on the London Stock Exchange.

Furthermore, FAB also issued AUD 350 million (AED 860 million) through a Kangaroo issuance. The five-year floating-rate notes were priced at 110 basis points over the three-month bank bill swap rate (BBSW) and issued under its AUD 2 billion debt issuance programme. 

The issuance marks FAB’s return to the Australian dollar market for the first time since 2014 and the bond will be listed on the Australian Stock Exchange.

“Both transactions are consistent with our strategy to diversify our investor base whilst raising cost-effective liquidity and funding,” said Sayegh.

Fitch Ratings said that global Sukuk issuance increased by six per cent in 2019 to $42.2 billion, due to the broadening range of issuers and investors.

RELATED STORIES: First Abu Dhabi Bank London Stock Exchange Kangaroo bonds Australian Stock Exchange Sukuk





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