ADCB kicks off second Formosa bond sale this year: ADX-listed Abu Dhabi Commercial Bank (ADCB) has reportedly opened books on a benchmark USD 600 mn five-year floating-rate Formosa bond, priced at a spread of 100 bps over the secured overnight financing rate (SOFR), Zawya reports. The bonds will be listed on the Taipei Exchange and Euronext Dublin, with the coupon paid on a quarterly basis. The move comes three months after the state-backed lender sold its first Formosa bonds this year in February, valued at USD 600 mn.

SOUND SMART- Formosa bonds are issued in Taiwan but are denominated in a non-Taiwanese currency. Other Emirati issuers in Taiwan's bond market include Mubadala, which raised USD 750 mn in Formosa bonds last year, and First Abu Dhabi Bank (FAB), which raised USD 800 mn in July 2024. Emirates NBD also took a USD 700 mn issuance to market in Taiwan this year.

About the offering: The senior unsecured notes are Reg S compliant, making it easier for foreign institutions to buy in. The issuance, which falls under ADCB’s USD 15 bn global medium term note program, was rated A+ with a stable outlook by both S&P Global and Fitch.

Use of proceeds: The bank will use net proceeds from the debt sale for general corporate needs and to finance or refinance eligible green loans, Zawya wrote.

ADCB has been somewhat regulatory tapping debt markets: In addition to its recently-closed Formosa bond issuance, the lender was reportedly considering a USD 500 mn tier two sale, last September.

ADVISORS- HSBC and Standard Chartered were appointed joint managers on the transaction.

IN OTHER DEBT NEWS-

FAB taps Taiwan’s debt market again: First Abu Dhabi Bank (FAB) listed a fresh USD 750 mn five-year floating-rate bond offering on the Taipei Exchange yesterday, according to a bourse announcement. The notes were priced at par with a coupon set at 97 bps above SOFR and are subject to certain selling restrictions. No further details were given.

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