Adib sukuk profit rate set

Abu Dhabi Islamic Bank (Adib) priced a $500 million five-year Islamic bond, or sukuk, at par with a profit rate of 3.78 per cent, leads said on Tuesday.

The sukuk was priced at a spread of 245 basis points over midswaps, at the tight end of indicated guidance earlier in the day.

Adib itself, Citi, National Bank of Abu Dhabi , HSBC, Nomura and Standard Chartered are book runners on the deal.

Both conventional and Islamic institutions, as well as global sovereigns such as Bahrain and Indonesia, have been flocking to the sukuk market, creating an unusually active fourth quarter.

Earlier this month, Abu Dhabi Commercial Bank priced a $500 million five-year sukuk at 275 bps over midswaps, attracting a reported order book of $1.4 billion.

Adib last tapped the debt markets when it issued its debut five-year $750 million sukuk with a 3.745 per cent coupon under the existing programme in October last year.

The bank's shares closed down 0.63 per cent at Dh3.13 on Tuesday, but are up nearly seven per cent this year.