FAB raises USD 200 mn from second-ever fixed maturity roll-out

FAB launches debut fixed maturity sukuk fund as part of new USD 200 mn portfolio: First Abu Dhabi Bank (FAB) has raised USD 200 mn in assets under management from its second fixed maturity portfolio, which it launched earlier this month, according to a press release. The portfolio includes the lender’s second series of conventional fixed maturity bonds, in addition to its inaugural Sharia-compliant fixed maturity portfolio.

The details: The three-year conventional fixed maturity fund has a yield of 5.50%, while the sukuk portfolio carries a yield of 4.50%. The two funds are designed to deliver returns through quarterly dividends, which will be distributed to investors or reinvested.

This is FAB’s second fixed maturity offering, following the launch of its first series in August 2023. This series has a fixed maturity of five years and consists primarily of USD-denominated fixed income, floating rate securities, and government-issued debt instruments.