Abu Dhabi Commercial Bank (ADCB) successfully issued a five-year Formosa bond worth $600 million, priced at SOFR plus 100 basis points. This pricing aligns with the final guidance provided to investors.

A banker involved in the deal noted that floating-rate tranches are particularly appealing to investors, especially bank treasuries. The five-year tenor is seen as the “sweet spot,” striking a balance between investor expectations and issuer capabilities.

Interest in the bond grew steadily throughout the day, according to the banker. ADCB opted to start marketing the bond at the final guidance level, aiming to “solve for size.” The final amount of $600 million was deemed “a good size at this price.”

On Wednesday, the bonds were trading 1 basis point tighter. The Reg S bonds received ratings of A+/A+ from S&P and Fitch, consistent with ADCB’s status.

HSBC Bank (Taiwan) and Standard Chartered Bank (Taiwan) served as joint managers for the issuance. The proceeds from the bond sale will be used for general corporate purposes.