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Leading UAE bank Emirates NBD said it had successfully priced Air Lease Corporation’s (ALC) five-year US$600 million sukuk, marking the first sukuk issued by a US company.
As one of the world’s largest aircraft leasing companies, ALC has raised more than US$20 billion through the bond market. The company has a net book value of $24.
According to Emirates NBD, strong demand for Sukuk led to orders exceeding US$2.2 billion, enabling ALC to increase issuance to US$600 million. Margins tightened 30 basis points to 5.85% on strong orders, with a spread of 185 basis points over US Treasuries.
The sukuk structure complies with the latest Shariah standards and the offering was hosted by Middle Eastern investors who received 80% of the quota.
It added that Sukuk is priced in line with its existing conventional curve, attracting quality institutional investors outside the US and diversifying ALC’s investor base.
Greg Willis, Executive Vice President and Chief Financial Officer of ALC, said: “As the first North American corporate Sukuk offering, we are pleased to demonstrate the depth and strength of liquidity in the Middle East market.”
“This transaction is a testament to ALC’s broad access to capital and we look forward to expanding our financing footprint in the region. The quality and breadth of transaction demand exceeded our expectations and we thank our banking partners, investors and advisors for their support support to achieve this outcome,” he noted.
Mohammad Al Bastaki, Chief Executive Officer of Emirates NBD Capital, said: “We are proud to have supported the successful pricing of ALC’s first Sukuk, which marks the first benchmark Sukuk issue by a US company.”
“Strong oversubscription and participation from quality institutional investors from the Middle East will support ALC’s efforts to diversify its investor base and reflect high demand for Shariah compliance issues outside the region. We expect this milestone to issues will motivate other non-regional issuers to consider sukuk issues,” he added.-TradeArabia News Service
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