28-05-2025
Abu Dhabi Commercial Bank targets popular tenor: IFR
Abu Dhabi Commercial Bank sold a US$600m five-year Formosa bond at SOFR plus 100bp, in line with final price guidance.
A banker on the deal said floating-rate tranches remain popular with investors, particularly bank treasuries, and that five years is considered the "sweet spot", offering a balance between what investors want to receive and what issuers are willing to pay.
Korea Housing Finance Corporation and First Abu Dhabi Bank both sold five-year Formosas a week earlier, the latter paying a spread over SOFR of 97bp.
Books for ADCB grew steadily throughout the day, the banker said. The issuer decided to begin marketing at final guidance and then "solve for size". The resulting US$600m was "a good size at this price".
The bonds were trading 1bp tighter on Wednesday.
The Reg S bonds will be rated A+/A+ (S&P/Fitch), in line with the issuer.
HSBC Bank (Taiwan) and Standard Chartered Bank (Taiwan) were joint managers.
Proceeds will be used for general corporate purposes.
