First Abu Dhabi Bank issues Middle East’s first | Asian Markets

First Abu Dhabi Bank (FAB), the biggest bank within the United Arab Emirates (UAE), has introduced the issuance of $100 million in three-year floating fee time period notes—the first digitally native bond within the Middle East and North Africa (MENA) area.

Listed on the Abu Dhabi Securities Exchange (ADX), the notes are issued by means of HSBC’s digital belongings platform, Orion, and are linked to Hong Kong’s Central Moneymarkets Unit (CMU), in addition to Euroclear and Clearstream. HSBC additionally acted as sole international coordinator, lead supervisor, and bookrunner on the transaction.

The floating fee notes carry a coupon of 5.1253% with quarterly funds. Primary settlement takes place on July 8, with maturity on July 8, 2028.

Digitally native bonds use distributed ledger technology (DLT) to symbolize possession—reminiscent of legal title or useful curiosity—in digital kind. Similar devices have been issued in Europe, Singapore, and Hong Kong by financial establishments, corporates, governments, and supranational entities.

Law firm Linklaters suggested FAB on the issuance. 

Defining second

ADX group CEO Abdulla Salem Alnuaimi referred to as the issuance a “defining moment” within the exchange’s digital transformation. He mentioned ADX ensured the bond’s integration with current post-trade infrastructure and alignment with international requirements.

“This initiative not only expands access to institutional-grade digital instruments, but also lays the foundation for a broader class of tokenised assets—including green bonds, sukuk, and real estate-linked products,” he mentioned.

ADX is the UAE’s largest exchange and the second largest within the MENA area after Saudi Arabia’s Tadawul.

Lars Kramer, group chief financial officer at FAB, added: “By transforming traditional settlement processes into seamless digital workflows, we are not only advancing FAB’s digital transformation but also helping investors navigate the global digital assets landscape.”

Middle East–Hong Kong connection

John O’Neill, group head of digital belongings and currencies at HSBC, informed FinanceAsia that the issuance displays growing demand for digital belongings throughout each the Middle East and Asia.

Global buyers can entry the bond by means of accounts held with CMU, Euroclear and Clearstream, or by way of eligible custodians utilizing HSBC’s platform, in accordance with a July 3 media release.

The deal arrives as capital markets within the Middle East and Hong Kong deepen cross-border collaboration. In May, the Hong Kong Stock Exchange (HKEX) co-hosted the second Capital Markets Forum Hong Kong with Saudi Tadawul Group. HKEX CEO Bonnie Chan mentioned the exchange goals to capitalise on rising deal movement between China, Asia and the Middle East.

HKEX additionally listed Asia’s first ETF monitoring Saudi Arabia’s authorities sukuks in May, following the debut of a Saudi Arabia equities ETF in 2023.

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