Abu Dhabi’s FAB Issues Islamic Bonds Under $5B Program: Report
The First Abu Dhabi Bank (FAB) Sukuk Company has announced the price for its five-year sukuk, which is a type of Islamic bond. This sukuk is in US dollars and is part of the bank’s $5 billion trust certificate program.
Sukuk Pricing
FAB Sukuk Company, a part of FAB, will issue the sukuk on January 16, and it will mature on January 16, 2030, according to Zawya. The bond will be listed on the London Stock Exchange (LSE).
The initial pricing is set at 100 basis points above US Treasury rates, with profits calculated semi-annually based on a 30-day month and a 360-day year.
The joint lead managers and bookrunners for the sukuk include FAB, Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD Capital, Industrial and Commercial Bank of China, Islamic Corporation for the Development of the Private Sector, and Standard Chartered.
In September 2024, Fitch Ratings confirmed FAB’s long-term rating at ‘AA-‘ with a stable outlook and a viability rating of ‘a-.’
Previous Sukuk Issuance
In February 2024, FAB launched a five-year sukuk, starting with an initial price set at 120 basis points above US Treasury rates.
In 2023, FAB’s debt instruments under repurchase agreements and included in non-trading investments dropped by 31.7% to $5 billion (AED 18.4 billion), down from $7.3 billion (AED 26.9 billion) in 2022.
9M 2024 Financial Performance
From January to September 2024, FAB’s net profit rose by 4% to $3.5 billion (AED 12.9 billion) compared to the same period in 2023.
Operating income grew by 16% year-on-year to $6.5 billion (AED 23.9 billion), and net interest income increased by 9% to $4 billion (AED 14.7 billion). Operating expenses also rose by 9% to $1.6 billion (AED 5.8 billion).
By the end of September, the bank’s total assets increased by 4% year-on-year, reaching $334.9 billion (AED 1.2 trillion).
Published: 9th January 2025
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