First Abu Dhabi Bank (FAB) has completed a USD 1 billion issuance of an Additional Tier 1 (AT1) perpetual non-call six-year instrument, set at a fixed rate of 5.875%. The bank stated that this move will reinforce its capital position as it approaches 2026 and is in line with its long-term capital strategy.
The pricing for the AT1 instrument was finalized at 5.875%, which is more than 50 basis points lower than the initial guidance range of 6.375% to 6.500%. According to FAB, this marks the lowest yield achieved by a CEEMEA conventional USD AT1 issuance since May 2021, underscoring the institution’s credit profile and status within the UAE banking sector.
Investor interest in the offering was significant, resulting in an orderbook exceeding USD 3.3 billion—more than three times oversubscribed. This level of demand represents both the largest orderbook for any UAE bank issuing AT1 capital and the biggest GCC AT1 transaction so far this year.
Felix Green, Group Treasurer at First Abu Dhabi Bank, said: “Achieving a USD 1 billion AT1 issuance at 5.875% in a period of market softness and elevated regional supply demonstrates the strength of FAB’s credit and the depth of investor confidence in the bank. This record orderbook reinforces FAB’s position ahead of year-end results and highlights the continued appeal of our credit to global investors. This transaction reflects excellent cross-team collaboration across Group Treasury, Investor Relations and Capital Markets.”
