First Abu Dhabi Bank (FAB), the UAE’s largest bank, has priced a EUR 750 million ($909 million) five-year bond at mid-swaps +55bps with an all-in yield of 0.142 percent.
This is FAB’s first Euro denominated benchmark issuance and the lowest-ever yield on any public bond issuance from MENA as well as the largest-ever Euro issuance by a bank from the region, the lender said in a statement Wednesday.
The deal has attracted a total orderbook of EUR 1.7 billion from over 110 investors, including large European central banks, asset managers and Sovereigns, Supranational and Agencies (SSAs) representing a 2.3x over-subscription.
This enabled FAB to tighten pricing by 20bps from initial price thoughts and price at EUR 55bps over mid-swaps, it said.
This was FAB’s fifth public issuance in 2021–all in different currencies, USD, CNH, CHF, GBP and now EUR.
Rula Al Qadi, Managing Director & Head of Group Funding at FAB commented: “Today, with our hugely successful debut deal in the Euro market we achieved another funding objective of diversifying and accessing a new pool of investors to further deepen our funding base.”
(Writing by Brinda Darasha; editing by Daniel Luiz)
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