The five-year paper offers an
initial price guidance of 100-105 basis points over mid-swaps. First Abu Dhabi
Bank, the largest lender in the United Arab Emirates, sold sukuk, or Islamic bonds,
worth $500 million on Thursday, as Gulf issuers start tapping debt investors in
what is likely to be another record year for regional bonds.
According to a document issued by
one of the banks leading the deal and seen by Reuters, the five-year paper
offers investors a profit rate equivalent to 90 basis points over mid-swaps.
It was marketed earlier on Thursday
with an initial price guidance of 100-105 basis points over mid-swaps.
The issuance, which will be
completed later on Thursday, comes on the heels of a $750 million bond sale by
rival Emirates NBD, Dubai's largest bank, on Wednesday - the first public debt
issuance from the Gulf region this year.
Banks, corporates and governments
in the oil-rich Gulf region are expected to rely heavily on debt financing this
year after the coronavirus crisis and lower energy prices squeezed their
finances.
The Gulf saw a second consecutive
year of record international bonds last year, topping $100 billion, and is
likely to notch up another record this year, bankers and analysts have said.