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ABU DHABI - First Abu Dhabi Bank (FAB) has issued a $1 billion Additional Tier 1 (AT1) perpetual non-call six-year instrument at a yield of 5.875%, according to a press release statement issued Monday.
The bank reported that pricing tightened by more than 50 basis points from the initial guidance range of 6.375% to 6.500%. FAB described this as the lowest yield for a conventional USD AT1 issuance from the CEEMEA region since May 2021.
The transaction drew significant investor interest, with orders exceeding $3.3 billion, representing an oversubscription of 3.3 times. The bank stated this marked the largest orderbook ever achieved by a UAE bank for an AT1 capital issuance and the largest for any Gulf Cooperation Council AT1 transaction in 2025.
Investors came from diverse geographical regions including Europe, the Middle East and North Africa, the United States, and Asia-Pacific.
Felix Green, Group Treasurer at FAB, noted that the issuance was completed during what he characterized as "a period of market softness and elevated regional supply."
The capital raised is intended to strengthen FAB’s capital base as it enters 2026 and support the bank’s long-term capital strategy, according to the statement.
The AT1 instrument is structured as a perpetual bond with a first call option after six years.
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