Monday 28 February 2022

FAB board approves up to $1 billion AT1 bonds issuance | Reuters

FAB board approves up to $1 billion AT1 bonds issuance | Reuters

The board of First Abu Dhabi Bank (FAB.AD), the United Arab Emirates' largest lender, approved on Monday issuance of up to $1 billion in Additional Tier 1 (ATI) bonds, designed to be perpetual.

Chaos in world markets following Russia's invasion of Ukraine have further exacerbated a slow year for bond sales out of the Gulf, already wary over a more hawkish U.S. Federal Reserve expected to begin an aggressive tightening cycle in March.

AT1 bonds are used to boost banks' core capital to comply with international banking standards and can be redeemed after a specified period.

The FAB board approved the new issuance at a general meeting on Monday but did not give details on the timeline.

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