WORLD NEWS | UAE: Abu Dhabi Investment Bank raises $750m in USD-denominated Tier 1 perpetual Sukuk

Abu Dhabi [UAE]12th July (ANI/WAM): Abu Dhabi Islamic Bank (ADIB) announced today that it has successfully raised 7.5 One hundred million U.S. dollars.

ADIB, rated A2 by Moody’s and A+ by Fitch with a stable outlook, has priced its perpetual non-callable, five-and-a-half-year Sukuk at 7.25% p.a. paid semiannually. The new Sukuk will be listed and traded on the London Stock Exchange.

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The offering was in high demand and attracted interest from more than 240 global and regional investors. The final order book exceeded US$7 billion, oversubscribed by more than 9 times, and the final pricing was 62.5 basis points tighter than the initial pricing idea. Furthermore, the reset spread is 306 basis points above US Treasury yields and 121 basis points below ADIB’s AT1 Sukuk issued in 2018.

“We are pleased to see this strong international demand persist as final pricing tightens. The Sukuk issuance will maintain the Group’s optimized capital structure and its strong CET1 position. The overall success of this financing can be attributed to ADIB A clear ESG framework and our strong ADIB Group CEO Nasser Al Awadhi said: “We have a strong track record of growing market share and delivering sustainable returns. “

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The offering was driven by broad demand across three regions, with final allocations by investor type at 83% MENA, Europe 13%, Asia 4%, Private Banking 70%, Asset and Fund Managers 16%, Commercial Bank 10%, other banks 4%.

The Sukuk issuance will maintain the Group’s optimized capital structure and strong CET1 status. ADIB’s Tier 1 perpetual Sukuk is structured in compliance with the internationally agreed Basel III regulatory framework, which includes detailed criteria for capital and liquidity.

HSBC and Standard Chartered acted as joint global coordinators and structuring agents for the Sukuk, with Abu Dhabi Investment Bank, Citibank, Emirates NBD Capital, First Abu Dhabi Bank and JPMorgan as joint lead managers and joint bookrunners . (ANI/WAM)

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