Abu Dhabi Commercial Bank (ADCB) has announced initial pricing guidance for its forthcoming five-year floating-rate note (FRN) denominated in US dollars, structured under Regulation S and classified as a Formosa bond. The bond is expected to be benchmark-sized, typically indicating a minimum issuance of $500 million.
The preliminary pricing is set at approximately 150 basis points over the Secured Overnight Financing Rate (SOFR). This offering is part of ADCB’s strategy to diversify its funding sources and tap into international capital markets.
Investor meetings commenced on 30 August, with ADCB collaborating with Barclays, Deutsche Bank, Emirates NBD Capital, JPMorgan, and Mizuho as joint bookrunners for the debt sale. Barclays is also serving as the sole Environmental, Social, and Governance (ESG) coordinator for this issuance.
The bond is structured as a Formosa bond, meaning it is issued in Taiwan by a foreign entity and denominated in a currency other than the New Taiwan Dollar. This structure allows ADCB to access a broader investor base, particularly in Asia.
This issuance aligns with ADCB’s ongoing efforts to strengthen its capital base and support its sustainable growth objectives. The proceeds from the bond are expected to be used for general corporate purposes, including funding green and sustainable projects, in line with the bank’s ESG commitments.
