"First Abu Dhabi" issues $ 500 million sukuk with a maturity of 5 years

First Abu Dhabi Bank issued a $ 500 million sukuk for five years.

The bank said in a statement today that the issuance was characterized by achieving the lowest return on a five-year dollar denominated issue issued by any bank in the MENA region, at 90 basis points above the average swap rate (profit rate of 1.411%).

He added that this issuance was the first for First Abu Dhabi Bank in US dollars in 2021, and the first sukuk issuance in the world during the current year, stressing that the issuance was highly popular with investors from various regions of the Middle East, Asia, the United Kingdom, and Europe, as the supply exceeded the supply. Triple, to attract investments of $ 1.5 billion.

According to the bank’s statement, the issuance yield was priced at 90 basis points, which represents an attractive price compared to the prices of other bonds traded to the bank, and witnessed a turnout from a wide and diverse group of investors, as the percentage of global investors reached 53%, while the percentage of regional investors reached 47 %, Noting that the percentage of Islamic investors has reached 76%, which reflects the attractiveness of "First Abu Dhabi" with regard to investment funds that are compliant with Sharia in the world.

"During the first week of this year, we were able to take advantage of the positive market conditions to complete the deal, at a price that is about 20 basis points lower than the traded price," said Rola Al-Kady, Group Head of Group Finance at First Abu Dhabi Bank.

The issuance was highly popular with investors around the world, reflecting the solid credit foundations of First Abu Dhabi Bank, and the positive outlook of international investors for the economy of the Emirate of Abu Dhabi and the UAE in general.

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