- City Fajr Shuruq Duhr Asr Magrib Isha
- Dubai 04:00 05:25 12:19 15:41 19:08 20:33
Emirates Islamic Bank (EIB) has completed issuance of $500 million sukuk certificates maturing in 2017 as part of its $1 billion Trust Certificate Issuance Programme.
The programme is guaranteed by Emirates NBD rated A3 by Moody's and A+ by Fitch. The Certificates pay a profit rate to investors of $ 5-year Mid-swaps + 350bps (4.718 per cent).
Citigroup, Emirates NBD Capital, HSBC Bank, National Bank of Abu Dhabi, Royal Bank of Scotland and Standard Chartered Bank were joint lead managers and bookrunners on the transaction. The transaction structure was a Sukuk Al Musharaka based on Sharikat Al Melk (Co-ownership), with the Certificates being a senior obligation of EIB.
The investor meetings were announced on January 3 with roadshows in Middle East, Asia and Europe.
EIB and Emirates NBD were represented on the roadshows by senior management who presented the Group's credit story during the investor meetings and Group presentations. The roadshows were very well attended by both Islamic and conventional investors.
The transaction closed within 12 hours from the release of initial pricing thoughts, with strong demand from regional and international investors. The syndicate and marketing strategies resulted in an order book that was oversubscribed 3 times. The order book was very well diversified with investor participation from Asia (29%), Europe (14%) and Middle East (57%).
Within the final order book, Banks accounted for 61%, Fund Managers 24%, Insurance and Pension Funds 9%, Private Banks 5% and others 1%.
Emirates Islamic Bank successfully achieved all of its issue objectives of capitalizing on the positive sentiment in International markets, low interest rate environment and strong Islamic liquidity. This issuance marks the first USD public bond issuance by Emirates Islamic Bank since 2007.
This successful sukuk issue will result in $500m of new 5-year funding for the Bank and was very well received in the market, as evident by the oversubscription, tight pricing and depth of investor base. This issue also demonstrates the confidence that the global capital markets have in the Emirates NBD Group.
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