The bank's second dollar-denominated issues within 10 days

First Abu Dhabi succeeds in issuing $600 million bonds

The “bank” has entered the capital markets twice since the beginning of 2023. From the source

First Abu Dhabi Bank announced its success in issuing bonds worth $600 million, with a term of 5.25 years, at a rate of 105 basis points above the US Treasury bond yields, with a total return of 4.514%, pointing out that the pricing was successful on January 19, 2023.

And the bank stated that this issuance is considered the second issuance of “First Abu Dhabi” denominated in dollars within 10 days, after its success in issuing “RegS” sukuk worth $ 500 million with a five-year term, which was successfully priced on the ninth of January 2023. Thus, it becomes “Abu Dhabi.” Alawwal is the only bank in the region to successfully enter the capital markets twice this year.

According to the bank, the $600 million bond issuance is the first bond issuance from a financial institution in the Middle East and North Africa region, achieving the lowest pricing margin (+105 basis points above the US Treasury bond yield ratio) by any bank in the world during 2023 at the level of Dollar-denominated bonds with a maturity of five years.

The bond issuance was met with orders worth $1.75 billion, three times the size of the subscription, by elite investors outside the Middle East and North Africa region.

According to the bank, the pricing represents an exceptional achievement compared to what global banks (including systemically important G-SIBs) pay an average of 10 basis points as a new issue premium on their issues.

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