ADIB raises $750 mil­lion in sukuk

The new Is­lamic bond is­sue was three times over­sub­scribed, ac­cu­mu­lat­ing $2.1 bil­lion in or­ders

The Gulf Today - Business - - FRONT PAGE -

ABU DHABI: Abu Dhabi Is­lamic Bank (ADIB), an­nounced that it has suc­cess­fully raised $750 mil­lion of ad­di­tional Tier 1 through a per­pet­ual sukuk that com­plies with Basel III reg­u­la­tory frame­work is­sued by the Cen­tral Bank of the UAE.

ADIB, which is rated A2 by Moody’s and A+ by Fitch, in each case with a sta­ble out­look, priced the non-call, five-year sukuk at a profit rate of 7.125 per cent.

The is­sue was three times over­sub­scribed, ac­cu­mu­lat­ing $2.1 bil­lion in or­ders.

The is­sue was driven by broad de­mand across three re­gions, with fi­nal al­lo­ca­tions of 69% to Mena, 22% to Europe, 8% to Asia and 1% to other in­vestors.

By in­vestor type, they were sold to pri­vate banks which took 34%, com­mer­cial banks 31%, as­set and fund man­agers bought 28% and oth­ers 7%.

The strong ap­petite from a broad range of in­ter­na­tional in­vestors, par­tic­u­larly in cur­rent global cap­i­tal mar­ket con­di­tions, was tes­ta­ment to ADIB’S pru­dent fi­nan­cial man­age­ment, and the bank’s prospects for fur­ther growth and de­vel­op­ment,” said Khamis Buha­roon, ADIB’S act­ing Chief Ex­ec­u­tive Of­fi­cer and Vice Chair­man.

“ADIB has grown to a ma­jor bank with over 1 mil­lion cus­tomers in the UAE, and we are in­vest­ing in our dig­i­tal and cus­tomer ex­pe­ri­ence of­fer­ing to main­tain our com­pet­i­tive edge in the com­ing years. This sukuk and our cur­rent share rights is­sue pave the way for fu­ture steady growth.”

The sukuk is­suance was part of a wider cap­i­tal raising ex­er­cise, which in­cludes raising eq­uity through a Dhs 1 bil­lion rights is­sue, with sub­scrip­tion run­ning from Septem­ber 25 to Oc­to­ber 9, and call­ing the ex­ist­ing Tier1 is­sue by 16 Oc­to­ber 2018.

ADIB, HSBC and JP Mor­gan acted as joint global co­or­di­na­tors and struc­tur­ing agents for the sukuk, while ADIB, Citi, Emi­rates NBD Cap­i­tal, First Abu Dhabi Bank, HSBC, JP Mor­gan, Shar­jah Is­lamic Bank and Stan­dard Char­tered Bank acted as joint lead man­agers and joint bookrun­ners.

The cer­tifi­cates will be is­sued by ADIB Cap­i­tal In­vest 1 LTD, a spe­cial pur­pose com­pany, and be listed on the Ir­ish Stock Ex­change.

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