Brookfield Business Partners and its partners have agreed to buy a 60% stake in the payments business of First Abu Dhabi Bank (FAB), known as Magnati with a valuation of $1.15bn. Once completed, FAB will retain a 40% stake in Magnati and will continue its partnership through its a long-term relationship agreement. Proceeds from the $690mn sale will be used to support FAB’s growth and transformation plans. Magnati was launched by FAB in 2021 as a fully owned affiliate. Separately, FAB’s board approved the issuance of up to $1bn in AT1 bonds, but did not give any timeline. FAB raised $500mn last week via a $500mn 5Y sukuk at a yield of 1.891%.
FAB’s dollar bonds were flat with its 4.5% Perp at 100.88, yielding 4.26%