First Abu Dhabi Bank Issues USD 500 Million in Senior Unsecured Sukuk 

United Arab Emirates (UAE)’s First Abu Dhabi Bank (FAB) is expected to sell USD 500 million in senior unsecured Sukuk on the 23rd of February 2022 and has begun taking orders.

Why it Matters?

The issuance represents only the third international issuance out of the Gulf in February. The impending US Federal Reserve introduction of aggressive tightening measures expected in March, compounded by the current diplomatic stand-off in Ukraine, has caused issuers to wait out the rattled debt markets, resulting in slow Sukuk sales out of the Gulf region. High oil prices in 2022 have reduced government funding needs in turn and are also expected to reduce the need for Sukuk issuance this year.

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