Abu Dhabi, 16 February 2020: First Abu Dhabi Bank (FAB), the UAE’s largest bank, the highest rated bank across the Middle East and one of the world’s largest and safest financial institutions, has issued bonds worth over AED 3 billion via two separate public issuances in three days, marking its first ever Sterling bond and first Kangaroo bond since 2014.
FAB issued its inaugural three-year GBP 450 million (AED2.15 billion equivalent) fixed rate bond, under its USD 15 billion Euro Medium Term Note (EMTN) Programme. This marks the first and largest ever Financial Institution GBP issuance from the region. The book was 2.8 times oversubscribed with strong participation from high quality UK investors. The bond will be listed on the London Stock Exchange.
The bank also raised AUD350 million (AED 860 million equivalent) 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. This marks FAB’s return to the Australian dollar market for the first time since 2014. The bond will be listed on the Australian Stock Exchange.
André Sayegh, Deputy Group CEO and Group Head of Corporate & Investment Banking, First Abu Dhabi Bank (FAB), 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. Both transactions are consistent with our strategy to diversify our investor base whilst raising cost-effective liquidity and funding. The strong levels of demand demonstrate the trust and confidence that global investors place in FAB, which is underpinned by our solid fundamentals, diversified funding base, robust liquidity, and market-leading credit profile and ratings.”
January saw FAB issue the region’s first dollar-denominated Sukuk of 2020, a USD 500 million RegS Sukuk under its USD 3.5 billion Trust Certificate Issuance Programme. The five-year Sukuk was priced at 90 basis points over mid-swaps and is listed on the London Stock Exchange. This is the lowest profit rate and credit spread achieved on any of FAB’s previously issued Sukuk, demonstrating the bank’s well-established investor base and recognition in the market. The orderbook topped USD 1 billion with 80% allocated to Islamic investors which is materially higher than the average seen in regional Sukuk deals.
FAB is rated Aa3/AA-/AA- by Moody’s, S&P and Fitch, respectively, the strongest combined credit ratings of any other bank in the MENA region.