First Abu Dhabi Bank issues $610 million Formosa bond

First Abu Dhabi Bank, the largest bank in the United Arab Emirates, has issued a $610 million Formosa bond, it said on Monday, confirming an earlier Reuters report.
Formosa bonds are sold in Taiwan by foreign borrowers and are denominated in currencies other than the Taiwanese dollar.
First Abu Dhabi Bank priced the deal last week, said one of the sources.
In a statement, the bank said the issue had a 30-year tenor and was callable — or redeemable by the issuer — every five years, adding the transaction would settle on January 22.
Other banks in the Gulf have recently raised funds in the Formosa bond market due to the low cost of issuance of this type of debt instrument.
Qatar National Bank, the Gulf’s largest bank, said last week it had completed a $720 million Formosa bond issuance which had a maturity of 30 years, callable every five years.
Abu Dhabi Commercial Bank, Abu Dhabi’s second-largest bank by assets, has also recently sold a $540 million Formosa bond, sources said last week.
First Abu Dhabi Bank was created last year by the merger of National Bank of Abu Dhabi and First Gulf Bank.
National Bank of Abu Dhabi has issued such bonds in the past, including an $885 million 30-year Formosa bond in January last year, and a $696 million public Formosa bond in October 2016, which was the first 30-year Formosa bond from the Middle East and North Africa.
Other banks in the Gulf region are expected to tap the Formosa market over the coming weeks, the sources said.

Source:Arabnews