First Abu Dhabi Financial institution (FAB), the most important financial institution within the United Arab Emirates (UAE), has introduced the issuance of $100 million in three-year floating charge time period notes—the primary digitally native bond within the Center East and North Africa (MENA) area.
Listed on the Abu Dhabi Securities Change (ADX), the notes are issued by way of HSBC’s digital property 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 charge notes carry a coupon of 5.1253% with quarterly funds. Main settlement takes place on July 8, with maturity on July 8, 2028.
Digitally native bonds use distributed ledger know-how (DLT) to symbolize possession—similar to authorized title or useful curiosity—in digital kind. Comparable devices have been issued in Europe, Singapore, and Hong Kong by monetary establishments, corporates, governments, and supranational entities.
Defining second
ADX group CEO Abdulla Salem Alnuaimi referred to as the issuance a “defining second” within the trade’s digital transformation. He stated ADX ensured the bond’s integration with current post-trade infrastructure and alignment with international requirements.
“This initiative not solely expands entry to institutional-grade digital devices, but in addition lays the muse for a broader class of tokenised property—together with inexperienced bonds, sukuk, and actual estate-linked merchandise,” he stated.
ADX is the UAE’s largest trade and the second largest within the MENA area after Saudi Arabia’s Tadawul.
Lars Kramer, group chief monetary officer at FAB, added: “By remodeling conventional settlement processes into seamless digital workflows, we aren’t solely advancing FAB’s digital transformation but in addition serving to traders navigate the worldwide digital property panorama.”
Center East–Hong Kong connection
John O’Neill, group head of digital property and currencies at HSBC, instructed FinanceAsia that the issuance displays rising demand for digital property throughout each the Center East and Asia.
World traders can entry the bond by way 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 launch.
The deal arrives as capital markets within the Center East and Hong Kong deepen cross-border collaboration. In Might, the Hong Kong Inventory Change (HKEX) co-hosted the second Capital Markets Discussion board Hong Kong with Saudi Tadawul Group. HKEX CEO Bonnie Chan stated the trade goals to capitalise on rising deal stream between China, Asia and the Center East.
HKEX additionally listed Asia’s first ETF monitoring Saudi Arabia’s authorities sukuks in Might, following the debut of a Saudi Arabia equities ETF in 2023.
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