First Abu Dhabi Bank issues 1.4b Chinese yuan 'Formosa' bond
Issue size was raised to 1.4b Chinese yuan after getting oversubscribed
Dubai: First Abu Dhabi Bank has issued the “largest” Formosa bonds in the Middle East, with the issue size totaling 1.4 billion Chinese yuan with a five-year tenor. In all, the Abu Dhabi entity pulled in 1.6 billion Chinese yuan, which ensured that it could raise the issue size to 1.4 billion Chinese yuan from 1 billion Chinese yuan.
“This deal is further testament to FAB’s ability to access niche markets at short notice and to take advantage of opportunistic funding levels,” said Rula Al Qadi, Head of Group Funding.
The dual-listing of the bond ensures FAB “earned maximum demand from onshore Taiwan as well as from the rest of Asia.
In fact, FAB has been a regular issuer in the Formosa market, “which enabled the bank to print the largest deal from the region in this currency”.
“The CNH deal swaps back well inside our USD curve for a decent size of the equivalent of almost $200 million,” the official added. “We are very thankful to all the investors who have supported FAB in this deal.”
FAB had recently come out with a successful 750 million Hong Kong dollar based 'green bond', again a first in the Middle East.