First Abu Dhabi Bank (FAB) announced on Monday that it has successfully issued a $1 billion Additional Tier 1 (AT1) perpetual non-call six-year instrument at a fixed rate of 5.875%.
Issuance details
The pricing came in 50 basis points tighter than the initial guidance range of 6.375% to 6.5%. FAB said the rate represents the lowest yield for a Central and Eastern Europe, Middle East, and Africa (CEEMEA) conventional US dollar AT1 issuance since May 2021, underscoring the bank’s strong credit profile.
Investor demand was robust, with a globally diversified order book spanning Europe, the MENA region, the United States, and Asia-Pacific markets. The issuance was oversubscribed 3.3 times, with orders exceeding $3.3 billion. This marked the largest AT1 order book ever achieved by a UAE bank and the largest for any GCC AT1 transaction in 2025.
FAB, the UAE’s largest bank by market capitalization and assets, said the issuance further strengthens its capital base ahead of 2026 and supports its long-term capital strategy.
“This record order book reinforces FAB’s position ahead of year-end results and highlights the continued appeal of our credit to global investors. The transaction reflects strong collaboration across Group Treasury, Investor Relations, and Capital Markets,” said Felix Green, FAB’s group treasurer.
Third-quarter performance
FAB reported a 21% year-on-year increase in third-quarter profit to $1.5 billion. Operating income rose 14% year on year to $2.5 billion, driven by strong transaction volumes, resilient margins, and solid non-interest income performance.
Net interest income increased 1.1% year on year to $1.2 billion, while net fee and commission income surged 20.7% to $331.7 million.
Forbes ranking
FAB ranked third on Forbes Middle East’s 30 Most Valuable Banks 2025 list and seventh on the Top 100 Listed Companies 2025 list.
