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First Abu Dhabi Bank raises $600m via unsecured bonds

By Reuters
The merger is part of First Bank Abu Dhabi's strategy to increase its footprint in Egypt Creative Commons
FAB sold the bonds at a spread of 105 basis points (bps) over US Treasuries

First Abu Dhabi Bank (FAB), the largest lender in the UAE, sold $600 million in senior unsecured bonds maturing in 5-1/4 years, a bank document showed on Wednesday.

FAB sold the bonds at a spread of 105 basis points (bps) over US Treasuries from initial guidance of around 130 bps over the same benchmark after demand topped $1.45 billion, the document showed.

Citi, Emirates NBD, FAB, HSBC and Standard Chartered are joint lead managers and book-runners on the debt sale.

Earlier this month, the bank launched a $500 million Islamic bond, or sukuk.

FAB, majority government-owned, is the second lender from the UAE this year to take advantage of an opportunity to issue debt following a significant slowdown in issuances from the Gulf region last year.