Abu Dhabi Islamic Bank Raises $750M through Sukuk Issuance

Abu Dhabi Islamic Bank (ADIB), the largest Islamic lender in the emirate, has successfully raised $750 million through the issuance of Sharia-compliant bonds, marking another step in the bank's efforts to broaden its funding sources.

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Abu Dhabi Islamic Bank Raises $750 Million Through Sharia-Compliant Bonds, Diversifying Funding Base

The five-year non-call, tier-one perpetual sukuk offers an annual profit rate of 7.25 percent and will be listed on the London Stock Exchange. ADIB shared this update in a statement to the Abu Dhabi Securities Exchange, where its shares are traded. The issuance attracted significant interest from over 240 investors globally and regionally, resulting in an oversubscription of nine times, with the final order book surpassing $7 billion.

ADIB's $750 Million Sukuk Issuance Reflects Strong Global Investor Demand and Confidence

ADIB's recent sukuk issuance not only demonstrates the bank's commitment to diversifying its funding base but also highlights the remarkable demand and confidence from global investors in the bank's asset quality. Nasser Al Awadhi, the group chief executive of ADIB, emphasized the success of the raise, attributing it to the bank's clear ESG framework and its track record of growing market share while delivering sustainable returns. The issuance, rated "A2" by Moody's and "A+" by Fitch, received broad investor interest, with final allocations showing 83 percent going to investors in the Middle East and North Africa (MENA) region, 13 percent to Europe, and 4 percent to Asia.

ADIB's Sukuk Offering Supports Strong Capital Structure and Basel III Compliance

ADIB's sukuk issuance plays a crucial role in maintaining the bank's optimized capital structure and its robust common equity tier-one position, reflecting its financial strength. The perpetual sukuk was carefully structured to align with the Basel III regulatory framework, which encompasses comprehensive criteria for capital and liquidity. Private banks took the lead among investor types, subscribing to 70 percent of the total allocation, while asset and fund managers accounted for 16 percent, commercial banks for 10 percent, and other investors for 4 percent. The success of the issuance was made possible through the collaborative efforts of HSBC, Standard Chartered Bank, ADIB, Citi, Emirates NBD Capital, First Abu Dhabi Bank, and JP Morgan, who served as joint coordinators, structuring agents, lead managers, and bookrunners.

ADIB Reports Strong First-Quarter Performance with 48% Net Profit Surge

ADIB recently announced its impressive financial performance for the first quarter, as its net profit attributable to equity holders soared by 48 percent compared to the same period last year. The bank's net profit for the three months ending in March reached Dh1 billion ($272 million), supported by increased revenue and fee income. During the reporting period, revenue surged by 81 percent year-on-year to Dh1.42 billion, while fees and commission income rose by 4 percent, reaching Dh300 million. ADIB's robust financial results underscore its ability to generate sustainable growth and solidify its position as a leading Islamic bank in Abu Dhabi.

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