• Largest-ever Tier 2 conventional bond issuance from a MENA bank
  • Tightest spread paid by any bank globally on a callable Tier 2 structure in 2023

Abu Dhabi: First Abu Dhabi Bank (FAB), UAE's largest bank and one of the world's largest and strongest financial institutions, successfully issued its inaugural USD Tier 2 capital securities on Tuesday, September 26,2023.  The USD 1 billion 10.5NC5.5-Year Tier 2 Bond is the largest-ever Tier 2 issuance from a UAE bank and the largest-ever Tier 2 conventional bond issuance from a MENA bank. 

The bond was priced at a spread of UST+170bps, resulting in a yield of 6.32%.  This is the tightest spread paid by any bank globally on a callable Tier 2 structure in 2023.

The offering attracted a well-diversified and high-quality order book, with significant participation from key global investors. FAB successfully allocated 79% of the issuance to investors outside the Middle East. Investor demand reached just under USD 3 billion, marking the largest book size ever achieved by FAB for any of its issuances to date.

Despite volatile market conditions, FAB was able to tighten pricing by 30 basis points and increase the deal size to USD 1 billion, surpassing the initially anticipated amount of USD 750 million. This was due to FAB's strong credit standing and the robust macroeconomic fundamentals of the UAE. Over 228 investors participated in the transaction, including numerous prominent global asset managers. FAB achieved the tightest spread on a Tier 2 issuance globally in 2023.

FAB also acted as joint lead manager and bookrunner on this Tier 2 bond issuance.

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About First Abu Dhabi Bank (FAB):

FAB is the UAE’s largest bank with an international network that spans five continents, providing global relationships, expertise and financial strength to support local, regional and international businesses seeking to do business at home and abroad. FAB is consistently ranked one of the world’s largest, safest and most socially responsible banks. A global bank and regional banking powerhouse, FAB is established in 20 markets from the Americas to Asia, and is known for consistently delivering results, generating returns and creating value.

FAB is proactively shaping the future with purposeful action for sustainable growth.  With total assets of AED 1.1 Trillion (USD 312 Billion) as of June-end 2023, FAB is rated Aa3/AA-/AA- by Moody’s, S&P and Fitch, respectively - the strongest combined ratings of any bank in the MENA region. FAB was named the UAE’s most valuable banking brand in the 2023 Brand Finance UAE 50 and Brand Finance Banking 500 rankings. The Bank has been ranked by Global Finance as the Safest Bank in the UAE and the Middle East since 2011, and #31 Safest Bank globally in 2022. The Banker’s Top 1000 World Banks 2022 rankings, measured by Tier 1 capital, ranked FAB as #2 in the UAE, #5 in the Middle East and #90 across the globe. FAB is also a regional sustainability leader (MSCI ESG rating of ‘A’), and a constituent of MSCI ESG Leaders and FTSE4Good EM indices.

FAB is a strategic pathway partner of the 28th UN Climate Change Conference of Parties (COP28), which is being held in the UAE from November 30 to December 12, 2023.

For further information, visit: bankfab.com.