FAB issues $600 mln worth of 5-year green bond

First Abu Dhabi Bank (FAB)’s five-year green bond has garnered $600 million at U.S. Treasury +95 basis points, with an all-in yield of 4.774 percent, Zawya reported on Thursday.

FAB’s Green Bond is the first to be issued by a MENA financial institution in 2023. FAB has also set a standard by obtaining the lowest spread ever for a traditional five-year bullet group contract in the MENA region.

The green bond has been priced at 5 bps inside FAB’s existing USD curve. Thanks to an outstanding 2.8x oversubscribed orderbook, the Green Bond was successfully increased from its initial goal value of $500 million to $600 million.

A significant 85 percent was given to foreign investors, the highest allocation for a MENA issuer in 2023, and 34 percent of the allocation, one of the biggest percentages in the market, was given to green investors.