Abu Dhabi Islamic Bank – rated A2 and A+ from Moody’s and Fitch, respectively, with a stable outlook – priced the non-redeemable sukuk for a period of 5 and a half years, at a profit rate of 7.25 percent per annum, payable semi-annually. The new sukuk will be listed on the London Stock Exchange.
The offering received a record demand and great demand, attracting the interest of more than 240 global and regional investors, as the value of orders amounted to $ 7 billion, exceeding the target value by more than nine times, and the final pricing reached 62.5 basis points below the initial pricing index.
The pricing margin is 306 basis points above the US Treasury yield, which is 121 basis points lower than the pricing margin for sukuk issued by the bank in 2018.
The offering was driven by broad demand from three regions, with 83 percent allocated to the Middle East, 13 percent to Europe and 4 percent to Asia.
According to the type of investor, 70 percent was allocated to private banking services, 16 percent to asset and fund managers, 10 percent to commercial banks, and 4 percent to other investors.
ADIB’s Tier 1 Perpetual Sukuk is structured to comply with the internationally agreed Basel III regulatory framework, which includes detailed capital and liquidity standards.
HSBC Bank and Standard Chartered Bank acted as joint global coordinators and structuring agents for the sukuk, while Abu Dhabi Islamic Bank, Citibank, Emirates NBD Capital, First Abu Dhabi Bank and JPMorgan acted. as joint lead managers and joint bookrunners.
For his part, Nasser Al-Awadhi, CEO of Abu Dhabi Islamic Bank Group, said: “The issuance of these sukuk would preserve the bank’s group’s capital and its strong position,” noting that this success comes thanks to the bank’s ability to increase its market share and achieve sustainable returns in addition to the framework The environmental, social and corporate governance work of Abu Dhabi Islamic Bank.
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