Initial price guidance for the sukuk was around 85 basis points over U.S. Treasuries, according to the document from one of the banks on the deal
First Abu Dhabi Bank head office situated at Khalifa Business Park in Abu Dhabi. Image used for illustrative purpose. First Abu Dhabi Bank head office situated at Khalifa Business Park in Abu Dhabi. Image used for illustrative purpose.
First Abu Dhabi Bank/ Handout via Zawya By Yousef Saba, Reuters News DUBAI- First Abu Dhabi Bank, the United Arab Emirates’ largest lender, is set to sell $500 million in senior unsecured Islamic bonds at 75 basis points over U.S. Treasuries, bank documents showed. The spread on the sukuk was tightened from initial price guidance of around 85 basis points over UST after FAB drew around $1.4 billion in orders excluding interest from joint lead managers, the documents showed. The deal is expected to launch later on Wednesday. Bond sales out of the Gulf have been slow this year as issuers wait out debt markets rattled by a more hawkish U.S. Federal Reserve expected to begin an aggressive tightening cycle next month, while political tensions over Ukraine further cloud the outlook.—Zawya News