ADIB raises $750 million in sukuk
The new Islamic bond issue was three times oversubscribed, accumulating $2.1 billion in orders
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.