FAB launches 1st global Sukuk in ‘24

First Abu Dhabi Bank (FAB) issued on Thursday a five-year Sukuk worth $800 million at a rate of U.S. Treasury +85 bps, which led to a total yield of 4.779%, as reported by Emirates News Agency (WAM).

This issuance is the first global Sukuk of 2024 and the region’s inaugural offering for the year.

The Sukuk’s final spread was 85 basis points over U.S. Treasuries, marking one of FAB’s smallest spreads on any USD public deal. This reflects the investors’ trust in the bank’s robust creditworthiness.

In line with diversity goals, 76 per cent of the allocation went to dedicated Islamic investors and 38 per cent to international ones.

The order book, oversubscribed by 1.9 times, included high-quality investors such as international fund managers, supranational entities, and banks.

Group Treasurer at FAB, Rula AlQadi, said: “We’re thrilled with this successful Sukuk issuance, the first of 2024 and a milestone for FAB.”

“Securing our largest Sukuk in four years and the lowest five-year public issuance spread in two years demonstrates investor confidence in the UAE and FAB’s creditworthiness. We deeply appreciate their continued trust,” she added.

This Sukuk issuance bolsters the bank’s standing as a top provider of Islamic finance and a reliable partner for global investors.

FAB also served as a co-lead manager for this Sukuk issuance.