Abu Dhabi - Mubasher: Abu Dhabi Islamic Bank (ADIB) announced on Saturday that it has successfully raised $750 million of additional first tier-one perpetual sukuk compliant with Basel III regulatory framework issued by the Central Bank of the UAE.
The non-call, five-year sukuk, rated B1 by Moody’s Investors Service, are priced at a profit rate of 7.125 percent, the bank said in a statement.
The issue was three times oversubscribed, accumulating $2.1 billion in orders, and 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.
“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,” said Khamis Buharoon, ADIB’s acting CEO and vice chairman.
The sukuk issuance was part of a wider capital raising exercise, which includes raising equity through a AED 1 billion rights issue, with subscription running from 25 September to 9 October, and calling the existing Tier1 issue by 16 October 2018.
ADIB, HSBC and J.P. Morgan acted as joint global coordinators and structuring agents for the sukuk, while ADIB, Citi, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, J.P. 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.
