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29 March 2024

Adib mandates banks for Islamic bond

Adib posted a record net profit of Dh314.5m for the third quarter of 2010. (FILE)

Published
By Reuters

Abu Dhabi Islamic Bank (Adib) is planning to issue an Islamic bond, or sukuk, in the coming weeks, and has mandated three banks to arrange the sale, with a roadshow planned as early as next week, two market sources said.

Adib, the second largest Islamic lender in the UAE, has mandated Barclay's Capital, HSBC and Standard Chartered  for the sukuk, the sources said, declining to be identified.

The bank is eyeing a US dollar denominated Reg S only Islamic bond, a report by IFR, a Thomson Reuters unit, said on Monday.

Representatives from Adib declined to comment.

Adib refreshed a $5 bn sukuk programme in July that had originally been launched in 2006. The bank has not yet sold any bonds under the programme, a spokeswoman said in July.

After a slowdown over the past year, Gulf-based sukuks are poised for a revival as large corporate and government issues come to market.

Qatar Islamic Bank sold a $750 million sukuk last month while Islamic Development Bank (IDB) has put a $3.5 billion sukuk programme into place and is currently conducting a road show in Europe.