FAB issues this year’s first Chinese Yuan in Formosa bond market
ABU DHABI, 12th January, 2021 (WAM) First Abu Dhabi Bank (FAB) has announced the issuance of the year’s first Chinese Yuan (CNY) in the Formosa bond market with a CNY 1.5 billion five-year bond at 3.15 percent. This deal also represents the lowest coupon paid by a MENA bank on a public CNH five-year issuance.
The successful offering was upsized to CNY 1.5 billion from a target size of CNY 1 billion. The majority of investors comprised both onshore Taiwanese and Asian investors and was well diversified amongst life insurers, banks, fund managers and securities houses.
The majority of investors were onshore Taiwanese and Asian investors and featured life insurers, banks, fund managers and securities houses. FAB had tapped the Formosa bond market last year as well.
Rula Al Qadi, Managing Director and Head of Group Funding at FAB, said in a statement: “FAB has always been very well received in the Formosa market whether issuing in CNY or USD - we tend to be a frequent issuer in this market as a commitment to the Taiwanese and broader Asian investors. This deal is once again a tremendous success because it is the lowest coupon ever on a five-year public CNY bond issued by a MENA bank and, on a swapped to USD basis, it comes well inside of our funding curve.”
First Abu Dhabi Bank (FAB) has issued the lowest-ever yield on any five-year Mena bank USD issuance with a $500 million five-year Sukuk issued at MS+90bps (all-in yield of 1.411 percent) through FAB Sukuk Company Limited.