Dubai: Abu Dhabi's mega-bank is turning its attention to the Far East once again. First Abu Dhabi Bank has come up with this year’s first Chinese yuan-denominated issue in the Formosa bond market.
The five-year 1.5 billion yuan bond has a coupon rate of 3.15 per cent and represents the lowest paid by a MENA bank on a public CNY five-year issuance. The offer was upsized to 1.5 billion yuan from a target size of 1 billion yuan.
The majority of investors were onshore Taiwanese and Asian investors and featured life insurers, banks, fund managers and securities houses. FAB had tapped the Formosa bond market last year as well.
Rula Al Qadi, Managing Director and Head of Group Funding at FAB, said in a statement: “FAB has always been very well received in the Formosa market whether issuing in CNY or USD - we tend to be a frequent issuer in this market as a commitment to the Taiwanese and broader Asian investors. This deal is once again a tremendous success because it is the lowest coupon ever on a five-year public CNY bond issued by a MENA bank and, on a swapped to USD basis, it comes well inside of our funding curve.”