FAB successfully prices $600 million 5-year green bond

Abu Dhabi: First Abu Dhabi Bank has successfully issued a five-year $600 million bond at US Treasury +95bps, resulting in an all-in yield of 4.774 per cent.

This issuance marks the first green bond issued by a MENA financial institution in 2023. The bond has been priced at 5bps inside FAB’s existing USD curve, showcasing the bank’s strong market positioning.

The green bond was successfully upsized from the initial target amount of $500 million to $600 million, thanks to a remarkable 2.8x oversubscribed order book. A substantial 85 per cent of the allocation went to international investors, while 34 per cent was dedicated to green investors.

Rula AlQadi, Group Treasurer at FAB, said: “We are thrilled with the overwhelming response to FAB’s $600 million five-year green bond issuance. This landmark deal not only demonstrates our commitment to sustainable finance but also highlights the strong investor confidence in FAB’s credit strength. We were pleased with the strong international participation and especially from Asian investors, who supported the deal despite the 25bps price tightening.”