First Abu Dhabi Bank (FAB) has tapped international debt markets once again, raising $750 million through a benchmark Tier 2 capital securities offering that attracted strong investor interest and enabled the lender to tighten pricing significantly from initial guidance.
The Abu Dhabi-based bank priced the Reg S-compliant securities at par, achieving a spread of 140 basis points above US Treasuries after launching discussions around the +170 basis points level. The transaction highlights continued investor confidence in high-grade Gulf financial institutions despite a competitive issuance environment.
The notes carry a tenor of 10.5 years and are non-callable for the first 5.5 years. Investors will receive a fixed coupon of 5.701%, paid semi-annually, matching the securities’ yield at issuance.
Demand proved robust throughout the marketing process. Orders climbed to approximately $1.65 billion before settling at around $1.35 billion, excluding interest from joint lead managers, giving the transaction a healthy oversubscription level.
The securities are scheduled to mature on December 30, 2036. They feature an initial call option on June 30, 2031, while the coupon reset date falls on December 30, 2031.
FAB enters the market with strong credit credentials, holding ratings of Aa3 from Moody’s and AA- from both S&P Global Ratings and Fitch Ratings, all carrying stable outlooks. Fitch has assigned the expected issue rating of A to the new securities.
The bonds will be admitted to trading on the Main Market of the London Stock Exchange.
The transaction marks FAB’s sixth debt capital markets issuance of 2026 and its second fundraising exercise this month. Earlier in June, the bank raised €750 million through a three-year green bond transaction.
A syndicate comprising Abu Dhabi Commercial Bank, Citi, Emirates NBD Capital, FAB, J.P. Morgan and Standard Chartered acted as joint lead managers and bookrunners for the deal.
