$500M sukuk issued by Noor Bank

dubai — Noor Bank has successfully priced its $500 million sukuk issuance with a five-year tenor on the back of a strong demand from global investors for the bank’s credit.

The benchmark-sized, senior unsubordinated sukuk with a wakala structure was priced with a profit rate of 4.471 per cent, equivalent to five-year midswaps plus 165 bps.

Initial pricing guidance of 175 bps area over mid-swaps was given earlier on Tuesday with the strong order book enabling final pricing to tighten.

The issuance, which matures in April 2023, was oversubscribed 2.1 times, receiving orders of $1.07 billion from 50 bids across a diverse group of investors that included one third from outside the Middle East.

Speaking after the transaction closed and following a roadshow that included Singapore, Dubai, Frankfurt and London, John Iossifidis, chief executive of Noor Bank, said: “The order book and pricing of our latest transaction demonstrates the confidence that the wide array of global investors has placed in our future growth strategy and the management who would implement that strategy. That Noor Bank was able to achieve this in the face of relatively tough market conditions and heavy competing supply, including two jumbo-sized deals by GCC sovereign issuers, is testament to the recognition and strength of our brand.”

— business@khaleejtimes.com