First Abu Dhabi Bank (FAB) plans to raise USD 750 mn from a 10.5-year Tier 2 facility, Reuters reports, citing a bank document. The bank priced the issuance at 185 basis points over US Treasuries, with a 10.5-year maturity. The debt will be non-callable for 5.5 years, meaning that FAB can’t redeem the securities in that period except by paying a penalty.

Tier 2? Tier 2 capital forms a part of a bank’s capital reserves. Unlike core capital listed as tier 1 (such as reserves and equity capital), tier 2 is comprised of assets considered more unreliable or risky due to being more illiquid or being harder to quantify.

ADVISORS- FAB, Deutsche Bank, Emirates NBD Capital, JP Morgan, and Standard Chartered Bank will act as joint lead managers and bookrunners for the debt sale.

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