- City Fajr Shuruq Duhr Asr Magrib Isha
- Dubai 03:59 05:25 12:20 15:41 19:10 20:36
First Gulf Bank (FGB) received excellent investor endorsement through a 2.8 times oversubscription of its $500 million Sukuk (Islamic bonds) issuance.
The FGB Sukuk transaction commenced on Wednesday and ended on the same day at a total value of $1.4 billion.
Led by FGB, Citi, HSBC, NBAD and Standard Chartered banks jointly, the transaction set the final price for the five-year Sukuk at 287.5 basis points above midswaps.
Rated as A2 (Stable) by Moody's and A+ (Stable) by Fitch, the Regulated S Bonds are listed in London and retain a fixed profit rate of 4.046 per cent per annum. Proceeds from the Sukuk are to be used for general corporate purposes.
Andre' Sayegh, CEO of First Gulf Bank, said: "The positive response we have received for this transaction clearly reflects the trust that investors have in our bank and in our strong fundamentals and ability to provide sustainable returns to our shareholders. This is our second Sukuk transaction, and we have witnessed overwhelming responses in both times from investors in the Middle East, Europe and Asia. Our business strategy and global expansion activities have reaffirmed people's trust in our bank and global investors continue to endorse our offerings.
"Carried out alongside our joint lead managers, the transaction carried the total subscription value of $1.4 billion. The proceeds will be used for general corporate purposes and to enhance our services and continue to diversify our funding base and our offerings," Sayegh added.
The breakup of sales was allocated to different locations, where 69 per cent of investors were Middle East based, 15 per cent were from Europe, and 16 per cent from Asian markets. The transaction was divided between Commercial and Investment Banks (72 per cent), Fund Managers (18 per cent), Private Banks (7 per cent) and Insurance and pensions (3 per cent).
Follow Emirates 24|7 on Google News.