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ADCB backs growth plans via $750m additional Tier 1 bond

ADCB backs growth plans via $750m additional Tier 1 bond
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0.23% 8.60 0.02

Abu Dhabi – Mubasher: Abu Dhabi Commercial Bank (ADCB) has successfully priced an Additional Tier 1 (AT1) bond with an amount of $750 million.

The issuance will boost the lender's capital base to support further growth in line with its new credit pipeline amid a resilient UAE economy, according to a press release.

ADCB recorded net loan growth of 10% in the first nine months (9M) of 2023 and subsequently updated guidance to 10-12% credit expansion for the full year.

The offering received orders of more than $4 billion from a diverse group of global investors. The AT1 Bond was priced at 8% following the tightening of 62.5 basis points from the initial pricing guidance

Last September, the ADX-listed lender issued $650 million in green bonds to support UAE’s transition to a net zero economy.

In the January-September 2023 period, ADCB posted 24% higher net profits at AED 5.75 billion, compared to AED 4.64 billion in 9M-22.

The operating income widened by 23% to AED 12.20 billion in 9M-23 from AED 9.94 billion a year earlier, while the basic and diluted earnings per share (EPS) increased to AED 0.73 from AED 0.61.