Abu Dhabi, June 1 (BNA): First Abu Dhabi Bank successfully issued a five-year bond of $600 million in US Treasury +95 basis points resulting in a total yield of 4.774%.
This issuance marks the first green bond issued by a financial institution in the Middle East and North Africa region in 2023. First Abu Dhabi Bank set a new industry standard by achieving the narrowest spread ever for a traditional 5-year financial institution group deal from the MENA region. The green bonds were priced at 5 basis points inside the current dollar curve of First Abu Dhabi Bank, which indicates the bank’s strong position in the market, Emirates News Agency (WAM) reported.
The size of the Green Bond was successfully increased from the initial target amount of $500m to $600m, thanks to a remarkable 2.8x oversubscription. This highlights the huge demand and confidence from global investors in the credit quality and sustainable initiatives of FAB. And 85% of the allotment went to international investors, which is the highest rate achieved by an issuer in the MENA region in 2023. In addition, 34% of the allotment went to green investors, which is one of the highest percentages in the market.
Rola Al-Qadi, Group Treasurer at First Abu Dhabi Bank, said: “We are pleased with the overwhelming response to FAB’s issuance of a 5-year green bond in the amount of USD 600 million. This landmark transaction not only demonstrates our commitment to sustainable financing, but also highlights the strong investor confidence At First Abu Dhabi Bank The credit strength We were pleased with the strong international participation especially from Asian investors, who supported the deal despite the 25 basis point tightening in the rate We achieved a spread of ‘less than 100’ in the final price – an achievement of which we are very proud and reflects the recognition market with First Abu Dhabi Bank credit quality and its leadership in the field of environmental, social and institutional governance in the Middle East and North Africa region.
The 5-year green bond represents the bank’s third successful public issuance in the US dollar market in 2023, which shows the credit strength of First Abu Dhabi Bank and its position in the market.
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