FAB issues the first Sukuk globally in 2024

First Abu Dhabi Bank (FAB) has successfully issued a 5-year USD 800 million Sukuk at US Treasury +85bps which resulted in an all-in yield of 4.779%.

This issuance marks the first Sukuk issued globally in 2024 and stands as the region's first offering for the year. The final spread for the Sukuk was set at 85 basis points over U.S. Treasuries, one of FAB’s lowest spreads on any USD public deal, demonstrating investor confidence in the bank's strong creditworthiness.

Achieving objectives of diversity, the allocation sees 76% directed towards dedicated Islamic investors and 38% towards international counterparts. The 1.9x oversubscribed order book represented high quality investors, including international fund managers, supranationals, and banks. Amidst a heavy supply in the market, FAB executed the deal intra-day with a negative new issue premium.

Rula AlQadi, Group Treasurer at FAB, 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 lowest 5-year public issuance spread in two years demonstrates investor confidence in the UAE and FAB's creditworthiness. We deeply appreciate their continued trust."

This Sukuk issuance further strengthens the bank’s position as a leading Islamic finance provider and a trusted partner for investors worldwide.

FAB also acted as joint lead manager on this Sukuk issuance.