Adib’s $750m sukuk oversubscribed 5 times

Abu Dhabi Islamic Bank (Adib) announced on Sunday that its $750m five-year Sukuk was oversubscribed by approximately 4.8 times.

The bank said that the issue, Adib’s first since 2006, was priced at an expected profit rate of 3.745 per cent, which is one of the lowest profit rates achieved for a five-year offering by a GCC bank.

Rated A2 by Moody's and A+ by Fitch with a stable outlook from both rating agencies, the sukuk will mature in November 2015.

“I am delighted that ADIB's return to the international capital markets was supported by extremely strong investor demand from across the Middle East, Europe and Asia,” said Tirad Mahmoud, CEO of Adib.

“With an order book of $3.6bn and an expected spread of 225 basis points over mid-swaps, we have successfully diversified and extended the tenor of our funding base and this will enable Adib to maintain its already successful customer centric growth strategy."

The book-runners for the sukuk were Barclays Capital, HSBC (B&D) and Standard Chartered Bank and the co-leads were LMH and Nomura.

“While Adib’s new sukuk issuance meets the strict investment guidelines of Islamic asset managers, pension funds and other investors, it attracted interest from a broad range of investors, including central banks, banks, asset managers, hedge funds and private banks,” said Mahmoud.
 

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