First Abu Dhabi Bank (FAB) is marketing a USD-denominated five-year Formosa bond, Zawya reports. The Regulation S notes are floating-rate, with final price guidance of 75 basis points over the secured overnight financing rate (SOFR) and an expected Aa3 rating from Moody’s, based on FAB’s own rating. The size of the issuance wasn’t disclosed.

Formosa bonds? They are foreign-currency bonds issued in Taiwan by offshore borrowers, typically listed on the Taipei Exchange and sold primarily to Taiwanese institutional investors. For issuers, Formosas offer access to a deep institutional base — especially insurers — often at competitive pricing and longer tenors, while diversifying funding sources.

Our take: FAB is leaning into demand for high-grade paper. The issuance marks its second debt issuance this year, following a USD 750 mn five-year Eurobond issued in January at a 4.299% fixed coupon. The lender has also previously tapped the Formosa market, raising USD 800 mn through green Formosa bonds in 2024.

Other UAE issuers have also issued Formosas:

  • Emirates NBD sold USD 700 mn of five-year senior unsecured Formosa notes in 2025;
  • Abu Dhabi Commercial Bank also completed two Formosa issuances last year, each USD 600 mn five-year floating-rate issuance;
  • Mubadala issued USD 750 mn in Formosa bonds in 2024.

ADVISORS- Crédit Agricole’s Taipei branch, Standard Chartered Bank (Taiwan), and KGI Securities are acting as joint managers on the issuance.

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