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Abu Dhabi Commercial Bank (ADCB) raised USD 600 mn through a five-year floating-rate Formosa bond, priced at a spread of 105 basis points above the secured overnight financing rate (SOFR), Asharq Business reports.
The issuance: The Reg S issuance received an A positive credit rating by S&P Global and an A+ stable rating from Fitch, Zawya reports. Settlement is expected on 26 February, with proceeds set to finance general corporate purposes for the bank.
Formosa bonds? Formosa bonds are issued in Taiwan but are denominated in a non-Taiwanese currency. The bonds will be listed on the Taipei Exchange and Euronext Dublin. Other Emirati issuers in Taiwan’s bond market include First Abu Dhabi Bank (FAB), which raised USD 800 mn and Mubadala, which issued USD 750 mn in Formosa bonds.
ADCB has been somewhat regularly tapping debt markets: ADCB was reportedly considering a USD 500 mn Tier 2 issuance last September. In 2023, the bank raised a USD 650 mn from a green bond issuance, after it raised USD 500 mn the previous year. ADCB also issued USD 540 mn in Formosa bonds in 2018.
ADVISORS- HSBC and Standard Chartered’s Taiwan offices are acting as joint managers.
OTHER DEBT NEWS-
Emirates NBD led Al Ahli Bank of Kuwait’s (ABK) USD 1 bn syndicated term loan facility — the lender’s largest debt financing to date — and acted as facility agent, according to a statement from ABK. Al Tamimi & Company advised ABK on the transaction, with partner Omar Handoush leading the legal team, according to a separate statement (pdf).
IN CONTEXT- ABK closed the USD 1 bn loan facility last month. The facility initially launched at USD 750 mn but upsized after receiving 60% oversubscription, reflecting strong demand from banks across the Middle East, Europe, Asia, and the US. The three-year facility will be used to refinance existing debt and support ABK’s general funding needs, the statement said.
Other advisors included Commerzbank, Doha Bank, Emirates NBD Capital, Industrial and Commercial Bank of China, and Sumitomo Mitsui Banking Corporation, who served as bookrunners and mandated lead arrangers. Saudi National Bank served as mandated lead arranger; Abu Dhabi Commercial Bank, HSBC, and National Bank of Fujairah as lead arrangers; the Bank of Baroda, China Construction Bank, Mashreqbank, Korea Development Bank, Banque Misr, Bank of New York Mellon, and Fubon Bank as arrangers; and Bankinter, Industrial Bank of Korea, and Citi Bank as managers; with Emirates NBD Capital also serving as documentation bank.
