FAB’s $1 billion AT1 six-year instrument oversubscribed 3.3 times

UAE’s First Abu Dhabi Bank (FAB), the UAE’s largest and safest financial institutions, has successfully issued a US$1 billion Additional Tier 1 (AT1) perpetual non-call six-year instrument at a fixed rate of 5.875 per cent.

The bond was nearly 3.3 times oversubscribed.

Investor demand was exceptionally strong, with a high-quality, globally diversified orderbook across Europe, MENA, the USA, and APAC. Orders peaked above US$3.3 billion, marking the largest orderbook ever achieved by a UAE bank issuing AT1 capital, and the largest for any GCC AT1 transaction this year.

The issuance further strengthens FAB’s capital base going into 2026 and supports the bank’s long-term capital strategy.

The pricing of 5.875 per cent is more than 50bps tighter than the initial range of 6.375-6.500 per cent. This represents the lowest yield for a CEEMEA conventional USD AT1 issuance since May 2021, demonstrating FAB’s credit strength and its leadership as the UAE’s global bank.

Felix Green, Group Treasurer, First Abu Dhabi Bank, commented: “Achieving a US$1 billion AT1 issuance at 5.875 per cent 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.”