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Abu Dhabi, 1 June 2023: First Abu Dhabi Bank (FAB), the UAE’s largest bank and one of the world’s largest and safest financial institutions, has successfully issued a 5-year USD 600 million bond at US Treasury +95bps which resulted in an all-in yield of 4.774%.
This issuance marks the first Green bond issued by a MENA Financial Institution in 2023. FAB has set a new industry standard by achieving the tightest-ever spread for a 5-year bullet conventional financial institution group deal from the MENA region. The Green bond has been priced at 5bps inside FAB's existing USD curve, showcasing the bank's strong market positioning.
The Green Bond was successfully upsized from the initial target amount of USD 500 million to USD 600 million, thanks to a remarkable 2.8x oversubscribed orderbook. This highlights the tremendous demand and confidence from global investors in FAB's credit quality and sustainable initiatives. A substantial 85% of the allocation went to international investors, which is the highest achieved by a MENA issuer in 2023. Additionally, 34% of the allocation was dedicated to green investors, representing one of the highest proportions in the market.
Rula AlQadi, Group Treasurer at FAB, said: "We are thrilled with the overwhelming response to FAB's USD 600mn 5-Year Green Bond issuance. This landmark deal not only demonstrates our commitment to sustainable finance but also highlights the strong investor confidence in FAB's credit strength. We were pleased with the strong international participation and especially from Asian investors, who supported the deal despite the 25bps price tightening. We achieved a “sub-100” spread at final pricing – an achievement we are immensely proud of and reflects the market's recognition of FAB's credit quality and ESG leadership in the MENA region."
The 5-year Green Bond represents the bank's third successful public issuance in the USD market in 2023, showcasing FAB’s credit strength and market position.