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First Abu Dhabi Bank Successfully Issues $800 Million Sukuks with Record-Low Pricing Margin

First Abu Dhabi Bank succeeded in issuing sukuks worth $800 million with a five-year maturity, at a price of 85 basis points above US Treasury revenues, with a total return of 4.779%.

The bank stated in a statement yesterday that this issuance represents the first sukuk issuance in the world in 2024, and the first offering from a financial institution in the region this year.

According to the statement, the final pricing margin for the sukuks was set at 85 basis points above the US Treasury revenue ratio, which is one of the lowest pricing margins for First Abu Dhabi Bank on any general dollar-denominated deal, which indicates investors’ confidence in the quality of the bank’s credit record.

The issuance witnessed a great response from investors, as the percentage of allocation to Islamic investors reached 76%. “First Abu Dhabi” also succeeded in allocating 38% of the total value of the issue to global investors, including international fund managers, development banks and banks. The increase in subscription requests amounted to 1.9 times the initial target amount, which led to the bank’s success in pricing the sukuk at a margin less than the market trading price.

Group Treasurer at First Abu Dhabi Bank, Rula Al Qadi, said: “We are pleased to witness the success achieved by the Sukuk issuance, which is the first for the year 2024, and represents an important step for the bank.”

She added: “Our largest sukuk issuance in four years, and achieving the lowest margin for a five-year public offering during the past two years, reflects the extent of investors’ confidence in the UAE and in the credit record of First Abu Dhabi Bank. On this occasion, we would like to thank the investors for their great confidence in us.”

The issuance of the Sukuk reflects the bank’s position as a leading provider of Islamic financial services and a reliable partner for investors around the world.

It is noteworthy that First Abu Dhabi Bank is a co-lead manager in issuing these sukuks.

2024-01-11 22:05:40
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